[Despite price decline, Dogecoin bulls remain optimistic]
On August 23, DOGE tried to break through the 50-day simple moving average (SMA) of $0.11, but due to strong short pressure, the price fell below the 20-day exponential moving average (EMA), indicating that sellers are in control of the market and the short- to medium-term downward trend is obvious. .
The 20-day EMA is a short-term indicator that quickly reflects price changes; the 50-day SMA is a long-term indicator that shows longer-term trends. When the price falls below these indicators, it indicates strong selling pressure and these levels act as resistance.
However, DOGE's Chaikin Money Flow indicator (CMF) suggests that selling pressure may be weakening and the decline is nearing an end. When the CMF rises higher and crosses the zero line, a bullish divergence is formed, suggesting a possible price rebound. Currently, DOGE has a CMF value of 0.04.
Additionally, the Moving Average Convergence Divergence indicator (MACD) also points to a potential rebound. The MACD line (blue) is above the signal line (orange) and is close to crossing the center line, which usually signals a bullish trend and prompts traders to go long.
If bullish momentum builds, DOGE could break above the 50-day SMA and 20-day EMA resistance, raising the price target to $0.13. But if the downward pressure persists, the price could sink further below key levels and even as low as $0.08.
