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Dogecoin (DOGE) Price: Traders Stay Bullish as Momentum Indicators Reset
The price of Dogecoin (DOGE) has plummeted approximately 30% from its July peak, with the meme-based cryptocurrency currently trading at $0.19 per unit. Despite this significant decline, traders remain optimistic about DOGE’s prospects, citing technical indicators and futures market data that suggests a reset in momentum is underway.
The recent drop-off in price has resulted in a critical juncture for DOGE, as it tests support around the $0.19 mark. This level represents an essential turning point, with a decisive break below potentially paving the way for further declines toward $0.17 and potentially even lower at $0.15.
However, if DOGE can maintain its current position above this critical support, it may signal that selling pressure has been absorbed, ultimately leading to a rebound back toward the 20-day exponential moving average around $0.22. This upward trajectory is contingent upon the cryptocurrency’s ability to hold onto its recent gains.
Technical indicators are also signaling a potential shift in momentum. The Relative Strength Index (RSI) has fallen from overbought levels above 80 to below 50, indicating that price action has cooled in the short term. Meanwhile, the moving average convergence divergence (MACD) indicator recently flipped bearish, corroborating this notion.
It is essential to note that these indicators are not signaling a complete breakdown, but rather a reset in momentum. As such, it’s crucial for traders to pay close attention to price action near the $0.19 support level. The golden cross pattern, which formed in late July and remains intact, further supports this idea of a technical setup conducive to a potential rebound.
Market data from major exchanges reveals that trader sentiment is not entirely bearish. Despite the recent downturn, long accounts are still outnumbering shorts by a margin on Binance and OKX, reflecting ongoing conviction in DOGE’s prospects among larger players.
Source: coincentral.com
