- Dogecoin struggles below $0.33 as trading volume drops 36%, signaling weak market momentum.
- Technical indicators remain bearish, with DOGE facing resistance and downside risks unless a trend shift occurs.
Dogecoin (DOGE) remains stuck below $0.33, showing little movement as its price slips 2% in the last 24 hours. Despite Neptune Digital Assets buying $370,000 worth of DOGE, trading volume has dropped 36%. This decline signals a lack of momentum and confirms weak market conditions for DOGE.
Technical Indicators Point to Weakness
The technical setup paints a bearish picture. The Ichimoku Cloud and Exponential Moving Averages (EMA) both suggest downward pressure. DOGE has struggled to break key resistance levels and remains below the Ichimoku Cloud. The future cloud remains red, signaling continued downward momentum, with resistance holding strong in the near term.
The conversion line (blue) has flattened, indicating consolidation rather than a trend reversal. The lagging span (green) remains below the price, confirming a downtrend. For DOGE to gain momentum, it must break resistance levels and show signs of a trend shift. However, no clear signals of recovery are in sight yet.
BBTrend Shows Some Improvement
The BBTrend indicator, which tracks trend strength, remains negative but has shown slight improvement. Yesterday, it peaked at -26.1 before moving up to -21.7 today. While the trend remains bearish, the slight improvement suggests that selling pressure is easing. If this trend continues, we could see consolidation or even a relief bounce.
However, as long as BBTrend stays negative, the overall bearish trend remains intact. This means DOGE will struggle to gain significant upside traction without a stronger momentum shift.
Dogecoin Price Outlook: Can DOGE Overcome $0.36 Resistance?
The EMA lines continue to indicate a bearish outlook, with short-term EMAs below long-term ones. This alignment suggests that the downtrend is strong. If the negative momentum persists, Dogecoin could test the $0.20 level.
If the trend reverses, DOGE could attempt to reclaim the $0.30 resistance. A breakout above this level might lead to a test of $0.36, a key level DOGE failed to surpass in January. If bullish momentum builds, a 54% upside could take DOGE to $0.40.
However, until the EMAs shift to a bullish formation, DOGE remains in a weak position with limited chances for significant upward movement.
Dogecoin’s price remains in a tough spot. The struggle to break key resistance levels and weak trading volume suggest that DOGE faces more downside risks unless market conditions change. Keep an eye on the technical indicators for any signs of a reversal.
