Dogecoin price is still within a descending channel even after bouncing off a crucial support zone earlier on Monday. The altcoin, which is ranked 10th in the cryptocurrency market according to CoinGecko, will likely remain under pressure in the near term.
Over the past seven days, its price has dropped by about 9.2%. However, it has recouped some of the previous week’s losses by rising by 2.7% over the past 24 hours.
DOGE has bounced off the support zone 0.2000 even as it remains on a downtrend. On Sunday, the altcoin extended its losses as the bears attempted to break the aforementioned support. After hitting an intraday low of 0.1922, it is back above the psychological level to its current 0.2069.
Even with the observed rebound, Dogecoin price is still in the descending channel whose formation began earlier in the month. On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages. Besides, the trendlines highlighted along the RSI are forming a wedge.
Based on these technical indicators, Dogecoin price will likely remain under pressure in the ensuing sessions. I expect it to trade within a rather tight range. From this perspective, the horizontal channel’s upper border will likely be along the 50-day EMA at 0.2153 with the lower border along the weekend’s low at 0.1916. Above the highlighted resistance level, it may surge further to 0.2303 before pulling back to the horizontal channel.
This post was last modified on Nov 29, 2021, 08:08 GMT 08:08