Daily Price Outlook
Dogecoin is enjoying a groove in the technical analysis dancefloor, moving to the beat within a range of $0.0625 as the upper boundary and approximately $0.0580 as the lower boundary.
Looking closer at the four-hour timeframe, Dogecoin dipped its toes in the oversold zone, hitting a low of $0.0529, but quickly bounced back, now strutting its stuff around $0.06171.
Dogecoin experienced a decline over the weekend as the price of Bitcoin dropped to $28,500. Despite hopes of a market recovery at the beginning of June, the situation has become increasingly challenging for investors. Nevertheless, Dogecoin holders remain resilient in the face of adversity.
The price of Dogecoin reached a new low for 2023 on June 10, plummeting by 10% in 24 hours to $0.0618. Over the next 48 hours, the cryptocurrency continued to decline and is currently trading at $0.0612. If the downward trend persists, Dogecoin could reach its lowest point since September 2022.
Despite the bearish market conditions, Dogecoin investors have displayed remarkable growth in Q3 2023, with nearly 110,000 new addresses added in the past month. This brings the total number of DOGE holders to 4.65 million.
Investors in the crypto market see this downturn as an opportunity to accumulate supply, resulting in a lack of fear reflected in the Crypto Fear and Greed Index. The index indicates a neutral sentiment, recovering from previous fears.
However, there is a possibility that Dogecoin investors may also withdraw soon due to the prevailing bearish market sentiment. The weighted sentiment for Dogecoin is historically high, indicating pessimism among investors.
DOGE/USD Price Chart - Source: Tradingview
DOGE/USD - Technical Analysis
Dogecoin is currently enjoying a groove in the technical analysis dancefloor, moving to the beat within a range of $0.0625 as the upper boundary and approximately $0.0580 as the lower boundary.
Taking a closer look at the four-hour timeframe, Dogecoin dipped its toes in the oversold zone, hitting a low of $0.0529, but quickly bounced back, now strutting its stuff around $0.06171.
The coin has already showcased its dance moves at the 23.6% and 38.2% Fibonacci retracement levels at $0.058 and $0.060, respectively. It recently twirled around the significant resistance level of $0.06260, which corresponds to the 50% Fibonacci retracement level.
As we groove to the technical indicators, we find the Relative Strength Index (RSI) busting some moves above and below the 50 level, hinting at some indecision among investors. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing off its smooth moves near the zero level, signaling a neutral stance in the market.
When it comes to potential price movements, if Dogecoin breaks out above the $0.0626 level, it could shine a spotlight on the 61.8% Fibonacci retracement level at $0.0645, leading to further dancefloor destinations at $0.067 and $0.0711.
On the downside, support is expected to step up its game around $0.058 or $0.0540. It's clear that the $0.0626 level has a key role to play, with potential selling pressure below it and the continuation of the upward trend expected above it.
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