Dogecoin Faces Pressure: Price Sqeezed by Moving Averages
Dogecoin, the popular meme-based cryptocurrency, is currently trading at $0.21529, marking a 2.27% decline over the past day. This dip comes after a consistent drop in the Asian trading session on September 4, where the price reached $0.2143.
The price of Dogecoin is facing intense pressure and is testing a crucial support level at $0.214. Candles are hovering around this support, indicating a strong defense by buyers. However, a break below this level could signal further downside for Dogecoin, potentially leading it back to the low point of August at $0.17.
A new point of interest is the squeeze between two key moving averages for Dogecoin. The 50-day Simple Moving Average (SMA) is currently above the Dogecoin price, while the 100-day SMA is below it. This tightening gap could either lead to a breakout or a breakdown. A decisive move above the 50-day SMA could indicate a bullish resurgence for Dogecoin, potentially allowing it to re-enact the July rally and break the $0.4 mark. On the other hand, a break below the 100-day SMA could signal further downside for Dogecoin.
The price of Dogecoin has been forming lower highs, indicating a consistent overhead resistance. This resistance is marked by a descending dashed line. If Dogecoin's price manages to break above the current level, it could potentially re-enact the July rally and break the $0.4 mark.
It's worth noting that the recent regulatory decisions have had an impact on Dogecoin's trading. Around September 4, the US Securities and Exchange Commission (SEC) approved the REX-Osprey Dogecoin ETF under the stricter Investment Company Act of 1940. This move enhanced regulatory oversight and investor protection, leading to a surge in Dogecoin's 24-hour trading volume to $1.78 trillion.
CoinMarketCap data shows a trading volume of 1.78 B in the last 24 hours for Dogecoin. As the battle between buyers and sellers continues at the $0.214 support level, the future price direction of Dogecoin remains uncertain. A break above $0.4 would represent a significant increase for Dogecoin's price, while a break below $0.17 could signal a return to the low point of August.
