At the time of writing, Dogecoin's price was trading at $0.1044, up 0.39 percent from yesterday, despite the general bear market in cryptocurrencies. This altcoin's journey hasn't been smooth, so don't get caught up in the little increase.
The cryptocurrency failed to maintain its pace and saw a minor 10% reversal earlier this week, on Monday, when it retested a major resistance level around the $0.115 level. The token has broken below the 50 SMA at $0.1057 after this dip, suggesting that there may be short-term downward pressure.
A support trendline formed from the recent lows has stabilized the DOGE token during this retreat, which might be a critical level for purchasers to defend in order to avoid a more substantial loss.
If important support levels are maintained, there is still a chance for a comeback, even if there can be short-term pressure to the downside. Actually, the cryptocurrency's power and tenacity in dealing with market volatility will be put to the test by its capacity to remain above the $0.10 threshold.
The on-chain measures for Dogecoin are just as pessimistic as the negative price activity in the technical data. A lack of interest and engagement among investors is evident from the token's continually falling transaction volume, according to statistics from IntoTheBlock.
The coin had a dramatic decline from its all-time high of 553.99k transactions at $0.11 on October 7 to a current low of 73.45k transactions at $0.108. There may be a decline in institutional investment in the cryptocurrency as the number of major transactions has dropped from 1.32k to 1.1k, a weekly high.
Taken together, these indicators suggest that the current downward price movement may persist for some time, maybe even breaking through important support levels, barring a change in market attitude.
When it reaches $0.10, will DOGE be able to sustain momentum?
Technical analysis suggests that the DOGE cryptocurrency will continue to face selling pressure as it tries to hold onto support above the $0.10 mark. One indicator that is now heading downward is the Relative Strength Index (RSI), which is negative. With an indicator reading of 45.03, there is plenty of room for the price to fall lower before it reaches oversold territory.
In such case, Dogecoin can go below the $0.10 support level and hit new lows at $0.092. The token is expected to retest its bottom from September, around the $0.088 price point, before trying another positive reversal, if this region again fails. The cryptocurrency might recover and go back up towards the $0.115 resistance level if buyers step in to support the $0.10 support level and market attitude changes.
A possible reversal of the present downtrend might be signaled by a successful break above this important barrier, which could pave the way for a retest of higher resistance levels around $0.126. The positive momentum might continue beyond this level since it is in line with the 78.6 Fibonacci retracement.