Bearish Trend Dominates as DOGE Fails to Sustain Rally

Dogecoin (DOGE) price has been in a downturn over the past day after bullish momentum failed to breach the 24-hour high of $0.1616. This bearish momentum dipped the DOGE price to a low of $0.1549 before eventually finding support. Attempts for a bullish reversal were nullified after $0.161 proved too stiff. 

However, at press time, bulls had nullified the selling pressure with price exchanging hands at $0.1609, a 0.93% surge from the intra-day low. 

If the bearish momentum persists and the intra-day low of $0.1549 does not hold, the next support levels to watch would be around $0.152 and $0.150. However, if the bulls recoup market control and breach the intra-day high of $0.1616, the next resistance levels to monitor would be at $0.163 and $0.165. 

Subsequently, DOGE’s market capitalization surged by 0.95% to $23,253,298,127, while the 24-hour trading volume declined by 32% to $731,769,277. 

However, the bears have the upper hand in the market, with the open interest down by 0.34 to $929.80 million. In addition, the derivatives volume had declined by 39.89% to $1.08B. 

On the price chart, the Relative Strength Index (RSI) rating of 51.23 suggests that the market is neutral. However, a bearish divergence may be building up since the RSI is moving below its signal line. If the RSI falls into the oversold region, the adverse trend maybe expected to continue. 

The tightening Bollinger bands, with the upper, middle, and lower bands touching at $0.17543, $0.159, and $0.144, respectively, suggest decreasing volatility, which precedes bearish pressure. However, with the price action developing above the signal line, bullish momentum may be building up for a breakout. 

Moreover, according to the inverse head and shoulder, a breakout may set DOGE in a bull rally targeting $0.22.

On the other hand, the Chaikin Money Flow (CMF) indicator is moving upwards despite being in the negative region with a rating of -0.01. This level suggests bears have the upper hand. If the CMF, however, moves into the positive region, it will point to an increasing buying pressure, hence the potential to retest the intra-dat high as bulls recoup market control.