Analysis: Dogecoin rejected for the fourth time at a price of $ 0.13
Dogecoin has been trying to break the $0.13 price level for a few days now. So far, it hasn’t succeeded, even after a fourth attempt. Will the coin go down from here? Let’s take a look at the charts.
How is DOGE doing?
To get a complete picture of the price, let’s first look at the most important price levels of DOGE. These can best be seen on the daily chart, where each candle represents 24 hours. Here we see a blue and a red zone.
We can leave the blue zone aside for now, but this is an important price point. Almost every time the coin arrived here, the price changed direction. It is therefore expected that DOGE can find support here, if the price ever drops that far again.
The red zone is a bit more important at the moment. The price is currently in the middle of this zone, and DOGE needs to hold strong if it does not want to fall much further. This price level has been important for the price before and has already caused several increases of at least 40%. A break above this red zone can cause a further movement upwards, but the opposite is true if the coin cannot recover.
Rejected fourth time
To analyze this better, let’s zoom in. We can best do this with a chart on a smaller time frame, such as the 4-hour chart. Here each candle represents 4 hours, giving us a more detailed picture than the chart above.
This way we can see how DOGE is currently reacting to the red zone. The coin has already made 4 attempts to get above this (indicated by orange circles), but so far without success. You would think that the chance of the coin falling further increases, but that is not necessarily the case.
Every time the coin wants to break through the top of the zone, sell orders are filled. And every move towards it actually increases the chance that the zone breaks. This level is getting weaker and weaker due to the decreasing number of sellers.
As long as the coin remains in the red zone, or breaks through it, there is not much going on. The currency can then still recover quietly. Still, it is good to keep an eye on this level if DOGE starts to drop. In that negative scenario, the blue zone from the first (daily) graph appears to be the next support.
