• Dogecoin has seen a temporary drop of 4.8% to $0.0840 as other cryptocurrencies such as Ethereum, Cardano, Solana and Shiba Inu also suffer a similar decline.
• The total crypto market cap fell by approximately 3.5% to just above $1 trillion.
• Price analysis shows that the Dogecoin uptrend will soon resume as a forming green candle on the daily time chart sits on support at $0.0802 in confluence with the 50-day and 100-day EMAs.
The cryptocurrency market has seen a significant decline in the past 24 hours, with Dogecoin (DOGE) leading the way with a 4.8% drop in price. This decline is not only limited to DOGE, as other cryptocurrencies such as Ethereum, Cardano, Solana, and Shiba Inu have also seen similar losses. As a result, the total crypto market cap has fallen by about 3.5% to barely hold above $1 trillion.
This decline in prices comes after the recent crypto market rally which saw Dogecoin and Shiba Inu bring back the meme coin hype, contributing to the crypto market regaining the $1 trillion capitalization mark a couple of weeks ago. However, analysts at Bitfinex have stated that while the rally looks promising on paper, the reality is that there are still limited traders in the markets. They further explained that the recent uptrend was driven purely by sentiment, low funding rates and cascading short liquidations.
Despite the recent drop in price, price analysis shows that the Dogecoin uptrend is set to continue. A forming green candle on the daily time chart sits on support at $0.0802 in confluence with the 50-day and 100-day EMAs. However, bulls must hold their feet down and deal with an immediate resistance at $0.0866, as reinforced by the 200-day EMA and the lower boundary of the falling triangle pattern.
The positive news for DOGE holders is that the technical indicators are still showing a bullish trend. The Relative Strength Index (RSI) is on the rise, indicating that buyers are still in control of the market. The Moving Average Convergence Divergence (MACD) indicator is also pointing to a bullish trend.
In conclusion, it looks like the current dip in Dogecoin prices is just a temporary pullback from the upward trend. Price analysis shows that the uptrend will resume soon, with the technical indicators still showing a bullish trend. As such, this may be a good time to buy the dip in Dogecoin and other cryptocurrencies.