Dogecoin price defied a wider cryptocurrency market downturn on Wednesday to rise by 1.6 percent and trade at $1.108 at the time of writing. DOGEUSD is at a potential inflection point, with the price aligning with the 50-Exponential Moving Average (EMA) and approaching the 50-EMA level on the daily chart.
The global crypto market is feeling the weight of the geopolitical tension in the Middle East, which has made investors adopt a cautious approach. The risk-off sentiment has seen investors reduce their appetite for high-risk assets like cryptocurrencies. Bitcoin, the market bellwether, has been trading sideways for the most part in the last five days and was on course to register the third successive daily loss on Wednesday.
Dogecoin price has lacked the institutional support of yesteryears , and that has played a key role in subduing its gains. The previous crypto market rally of 2021 saw multiple institutions integrate DOGE as a payment option, and the resulting enthusiasm helped promote retail uptake.
Also, the emergence of meme coin mania in 2024 has diverted some of the spotlight that was previously focused on Dogecoin and Shiba Inu. Meme coins like PEPE, BOME and WIF have offered investors greater thrill than DOGE due to their higher volatility levels. As things stand, Dogecoin price’s upside will be limited, unless the wider market spikes.
The RSI momentum indicator on Dogecoin price signals bullish control. With the pivot at 0.108, the upside is likely to encounter initial resistance at 0.110. However, if the momentum strengthens, DOGEUSD could clear that hurdle and move higher to test 0.113.
Conversely, moving below 0.108 will favour the sellers to take control. In that case, the first support could be established at 0.105. However, the downside could extend further if the sellers extend their control. In that case, a break below the first support will invalidate the upside narrative, and the second support could come at 0.104.
This post was last modified on Oct 09, 2024, 21:03 BST 21:03