Many people are now wondering why Dogecoin is going down? Is it an excellent opportunity to buy at this point? Well, to be honest, Dogecoin doesn’t carry any practical usage or value. Unlike Bitcoin, which is a lone wolf and carries a long of sentimental value as accepted by a vast majority of crypto enthusiasts, Dogecoin was first in its game but now has a large number of meme coins hounding to get on top of one another.
Such coins do not carry any real value or user applications since they are neither widely accepted nor used in business applications. As a result, Dogecoin has slipped in its position and now stands at the 10th position with a decent market capitalization of $27 billion. To date, DOGE is under immense selling pressure, dropping its value by over 40% from its recent high of 35 cents.
Dogecoin Extends Downtrend
A clear downtrend movement breaks both important moving averages of 100 and 200 days, and the downward intersection of 200 DMA by 100 DMA curve makes a considerable impact.
Dogecoin price action clarifies that the profit booking on September 07, 2021, has weighed heavily on this cryptocurrency. The negative trend initiated since that day has forced Dogecoin into making fresh lows each week. There is swing support of $0.1931, which is again in action, and we can see it adding a decent selling pressure on the price action of Dogecoin. Negative consolidation would likely continue until DOGE manages to trade above the upper trend line of the consolidation level.
RSI drop was witnessed way before the massive profit booking day, indicating a potential fall above three weeks ago. Expecting a retracement could likely take much longer to happen. Hence, going with the current price action is a much better way of proceeding into Dogecoin. Volume transaction and RSI seems relative since the decrease of one enforces the other.
For trading purposes, $0.2673 comes out as a resistance level and $0.19 as support. Closing near 100 or 200 DMA can increase volatility on prices. Hence one should plan an entry at least 10% before those levels.
