Dogecoin Price Analysis: 29 May

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

Dogecoin has held its position well since last week’s price decline. And yet, over the past few days, its value has consistently declined on the chart and there is a potential chance that the asset may witness a massive breakout soon. At press time, Dogecoin was ranked 7th on CoinMarketCap with a market cap of $38.7 billion.

Dogecoin 6-hour chart

DOGE/USDT on Trading View

After the instant recovery over the previous week, Dogecoin has consistently declined in value at a steady state. While it avoided any massive breakouts earlier, at press time, DOGE was breaking out a symmetrical triangle. While the pattern indicated the possibility of a move on either side, indicators were largely bearish at the time.

The first bearish divergence can be observed between the decreasing volumes and increasing price movement. The 50-Moving Average has continued to facilitate the crypto’s overhead resistance and the SSL indicator was projecting a sell signal, with the red line undergoing a bearish crossover.

Market Rationale

DOGE/USDT on Trading View

At press time, the Relative Strength Index or RSI was picturing a hike in selling pressure as the buyers were falling to sellers’ dominance. The MACD completed a bearish crossover as well, with the orange line hovering above the blue line.

Surprisingly, the Awesome Oscillator suggested that bullish momentum was increasing for Dogecoin, a finding that will possibly undergo invalidation going forward.

Conclusion 

The worst-case scenario for Dogecoin would be a re-test of $0.21. However, the particular range of $0.21-$0.18 is also a demand zone for the asset, one that may allow the coin to facilitate stronger moves upwards after the retracement. Market momentum will be key going forward, and bullishness will be largely lacking for the meme coin.