After a turbulent month, Dogecoin price looks to stabilize Just around the $0.2 level, and it continues to show strength at that level. However, there are some developments on the meme chart that suggest there may be some bearish headwinds that could lead to another collapse. MyCryptoParadise Cryptocurrency Analyst outline This is in a recent analysis that shows the possible directions that Dogecoin price could head as the market develops.
Dogecoin price is facing strong resistance
The first thing that stands out is that the cryptocurrency analyst explains that Dogecoin price is already seeing a lot of resistance, especially on the 4-hour chart. Since the price was rejected below $0.21, it indicates that bears are already putting significant pressure on the price at this level.
Another interesting chart is the 1-hour Dogecoin chart which shows a breakdown in a rising wedge. The fact that this The breakdown occurred with bearish divergence It increases the odds of the price falling, pushing it down towards the next major support level.
The cryptocurrency analyst also shows that this bearish move is still supported by the confluence that has emerged. On the 1-hour chart of Dogecoin, the 200EMA is also acting as dynamic resistance, adding more pressure to the already bearish chart.
Hence the cryptocurrency analyst advises Investors need to be careful Before entering into the meme coin. For the best time to enter, it is best to wait until the price collapses towards lower levels before taking any trade. If the current trend continues, it could see another 10% collapse.
In the event of this breakdown, the next key level is just above $0.18, which is where support is accumulating. A cleaner bearish candlestick pattern would ensure entry with less risk, before the Dogecoin price begins another bounce.
However, as with any setup, there is still the possibility of invalidation and this time, the bulls can do just that. Dogecoin price should break out and form a candle above the resistance area on the 4-hour chart. Such a sustained breakout would invalidate the downtrend and open the way for a continuation of the uptrend.
The post Why The Dogecoin Price Is At Risk Of Another 10% Crash first appeared on Investorempires.com.
