Dogecoin Price Analysis: 7 May

Dogecoin surged by 22% on 5th May to record a new ATH of $0.696 in the charts. After the hike, the asset underwent correction on the 6th but currently, it is projecting signs of recovery in the charts. The possibility of another re-test at $0.696 is evident but there is an equal possibility of a correction at any moment.

Dogecoin 1-hour chart

DOGE/USDT on Trading View

At press time, Dogecoin has been observed to break away from the descending channel pattern, confirming its short-term bullish trend. However, the asset is struggling to maintain a position above the 50-MA. The decreasing trading volume indicates inactivity at the moment, as buying pressure might be going down. SSL indicator remained bullish at press time, suggesting a buy signal for the asset.

Market Rationals

DOGE/USDT on Trading View

Market Indicators are currently split as well. Relative Strength Index or RSI has breached past the neutral zone, but over the past few hours, selling pressure has piled up. The trend had also turned bullish earlier in the day according to MACD indicator, but at press time, it is moving towards a bearish crossover.

Awesome Oscillator suggested mild bearish momentum present, suggesting an absence of upper hand for either trend.

Conclusion

Based on past trajectory, Dogecoin has repeatedly re-tested its ATH at least once before a strong period of correction. However, the rapid re-test hasn’t taken place during the last trading session. A continuous sell-off may unfold a correction for Dogecoin sooner than later. Immediate support is present at $0.54, but the price may drop below the $0.50 level as well over the next few hours.