Hello everyone, I'm Penny.
Dogecoin has stabilized at current price levels after a bout of decline, and as the RSI shows, things may finally be improving. Many are now wondering if this stabilization signals the end of its downtrend or if there will be more declines to come.
The fact that Dogecoin is currently trading below its 50 EMA (around $0.36) suggests that it will have trouble regaining its bullish momentum for the time being.
Despite the recent decline, the RSI (Relative Strength Index) is still close to 42, so selling pressure is not high. But it is important to remember that the RSI has not yet entered the oversold territory, so there may be further declines before a rebound is possible. In early December, the price pattern broke out of the ascending channel and is now showing a descending structure.
Due to this decline, DOGE is now closer to its 100 EMA, around $0.28, which could become a key support level if further declines occur. If the price breaks through this barrier, the 200 EMA (around $0.22, if reached, would indicate a significant trend reversal) will become the next important support level to watch.
On the upside, DOGE needs to break through the 50 EMA at $0.36 to reignite optimism. If successful, it may target the upward resistance level between $0.38 and $0.40, which has been a strong resistance level in previous rebound attempts. According to RSI, DOGE is neither oversold nor overbought and is currently in a neutral position.
This is consistent with the current sideways movement of the market, indicating that the market is waiting for a clear signal to indicate the next important price direction. The price action near RSI and the 100 EMA is an important indicator that traders need to monitor. If DOGE rebounds from this level, it may be preparing for a recovery, but if it fails to hold the important support level, it could trigger another wave of selling pressure.
I am Penny, a long-term coin holder enthusiast. I don't engage in contracts and don't recommend leverage. I earn coins in a bear market and earn USDT in a bull market. If you are also this kind of person, then welcome to follow Penny!
Let's traverse the bull and bear markets together, huddle for warmth, and strive to be a rougher kind of retail investor.
