Following the overall trend of the cryptocurrency market, Dogecoin price has been stuck in a sideways movement for a while now. Mostly, there was more dominance to the downside than any chance of recovery, pushing it towards critical support levels. Amidst this, the meme has shown a lot of weakness and the trend remains generally bearish in favor of further price decline.
Why Dogecoin May Crash Instead of Recovering
With the price of Dogecoin already suffering, cryptocurrency analyst RLinda said He believes The downward movement may continue to take hold for a while. She points to the fact that the price has since been consolidating between two key levels at $0.1763 and $0.118, but there have been no major moves yet. This indicates that it is leaning toward the downside rather than the uptrend and could lead to a pullback.
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Looking at the technical side of things, the cryptocurrency analyst shows that there is no indication that Dogecoin price could see an upward move. So far, lower highs and lower lows have been formed, which is a more bearish trend for the price. Although there were slight recoveries, sustainability remained an issue Momentum tends to fade just as quickly As it appears.
Right now, RLinda is signaling the possibility of an upward move to absorb liquidity, but there is no indication that this move will continue either. The analysis indicates a growing liquidity pool at $0.188, which emerged after local consolidation at the beginning of the month. Naturally, the price can move up quickly to absorb liquidity at this level, but it can also go back down quickly as well.
The reason why Dogecoin price is likely to pull back from the upside is the fact that this liquidity at $0.188 could be resistance to the uptrend. In this case, increasing downward pressure could quickly take over, and this could lead to a quick reversal. In this case, the cryptocurrency analyst believes that… Dogecoin price may collapse again From $0.188 to $0.165 before finding support.
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From here, Two main viewing levels Support is at $0.1763, which must hold for any recovery to occur. After that, $1,188 is the resistance that needs to be broken for the breakout to continue. “If the market does not allow the price to rise, it is worth monitoring the support level 0.17635,” RLinda stated. “Consolidation below this level will confirm a false breakout of the lower level and may lead to a decline.”
Featured image from Dall.E, chart from Tradingview.com
The post Dogecoin Does Not Have Potential For A Strong Move Upward, Analyst Says first appeared on Investorempires.com.
