Dogecoin Price Defends Support Despite Bear Defense on Resistance

Key Points

• Dogecoin price is trading below the resistance area marked by $0.07596 and $0.07652.
• Bulls continue holding onto support at $0.07437, avoiding further losses.
• Volume of trades keeps increasing despite poor price performance.
• The breakout of support will bring $0.07290 into play as the next target.
• A breakthrough of resistance at $0.07652 will negate the bearish view, taking price towards $0.07883.

Dogecoin Price Moves in Tense Decision-Making Zone

Dogecoin price is moving sideways as both buyers and sellers are locked in fierce battles for short-term control of the pair. Even though bulls have managed to hold vital support levels during the past trading days, sellers have not relented and are still sitting pretty near resistance levels.

Such an indecisive price action is indicative of a market waiting to confirm whether it wants to make any move. Indeed, the volume of trades has been growing, but there has been no price movement out of the defined support and resistance zones. Despite occasional short-term bounces, the overall situation remains tough as bearish momentum persists.

Bearish Structure Dominates Again

The latest technical assessment conducted by Finora AI still sees bearish signals for Dogecoin on an hourly time frame. It considers the $0.07596 to $0.07652 price zone as a powerful supply zone or fair value gap. In other words, a powerful selling sentiment can be seen around this level.

In fact, this resistance zone has already been rejected many times within the last several trading days. Each time when bulls attempted to break above this level, the price was met with increased selling pressure and the current bearish structure remains intact.

As per this assessment, traders must be looking for bearish confirmation before taking new short positions. The mere touch of this resistance zone doesn’t guarantee a reversal, and each failed attempt makes this probability higher. The report also states that the only way to invalidate this bearish sentiment is a decisive close above $0.07652. This will mean bulls have the upper hand again and the price might move towards its next upside target near $0.07883.

Support at $0.07437 Is Crucial

As of writing, Dogecoin is trading at $0.07515, which shows that the cryptocurrency has declined by about 1.2% in the past 24 hours. Despite the losses witnessed so far, buyers have been trying hard to defend the support area located between $0.07437 and $0.07450.

So far, each move below this area has seen bulls buying Dogecoin in bulk, thereby stopping the losses. Nonetheless, recoveries have not been impressive, indicating that bull power is still relatively weak.

According to Finora AI, $0.07437 represents the first target of the bears. In case sellers manage to push price below this support area, further declines towards the next level at $0.07290 can be expected.

On the other hand, Finora AI presents another scenario. If the price moves below the support briefly before bouncing back due to liquidity sweeps, there is the likelihood that bulls will push price back above the resistance located at $0.07596.

Trading Volume Keeps on Growing

While the price performance was not as impressive, market participation has become much stronger. The 24-hour trading volume of Dogecoin has gone up by about 32.38% and is now standing at close to $801 million. Increased volume when prices are falling usually shows that traders are actively positioning themselves on both sides of the trade.

In the meantime, the market cap of Dogecoin can be estimated at $12.82 billion, with its fully diluted valuation coming very close to this number because most of the tokens have already entered circulation. Around 170.68 billion DOGE are circulating right now. Higher volume shows that traders are still interested in waiting for the direction.

What Should Traders Look For Next

The upcoming trading sessions may be crucial in determining Dogecoin’s immediate trend. So long as price trades below $0.07652, sellers are still dominant and the bearish trend is expected to continue. Any breakdown below $0.07437 will raise the expectations of a decline in the crypto to the level of $0.07290.

On the other hand, any break above the level of $0.07652 will reduce the strength of the bearish trend. A strong bullish movement in the market may see buyers target the resistance at $0.07883.

Currently, the cryptocurrency is caught in a well-defined technical range. Traders will likely wait for a decisive breakthrough to get a clear direction of where the crypto is going next.