Dogecoin (DOGE) has been on a selling mode since it plunged below the £0.16-mark in December 2021. The meme cryptocurrency hit its yearly lows in June as a result of this downtrend phase. However, the buyers did not stop to try to reclaim important support levels.
DOGE cemented its ground above its ten-month trendline support after breaking out during its last bull run. This trendline’s support has once again been tested by the recent bearish pull from the POC.
The cryptocurrency could secure a near-term bounce if it discovers solid rebounding support before resuming its downward trajectory. At the time of writing, it was down 3.35% in the last 24 hours, trading at £0.053.
The bearish pressure surfaced around £0.068, with the subsequent reversal driving DOGE below its 20/50 EMA.
Buyers and sellers clashed in the POC zone, but the bears’ intentions stood exposed due to the bearish engulfing candlestick.
The buyers would try to stem the current bleeding based on the empirical rebound tendencies from the coin’s long-term trendline support. Buyers could test the £0.058-zone in the event of a rebound from this area before a potential reversal.
DOGE would record more losses if it kept falling below the £0.052.2-mark. In order to get the market moving before a likely slump, the sellers would try to trigger a move toward the £0.048-zone.
The RSI falling below the 43-support level signaled a strong bearish edge. The near-term selling activities would benefit from the trajectory remaining below this level.
Additionally, the Awesome Oscillator’s decline below zero coincided with the overall bearish outlook.
Interestingly, throughout the most recent decline, the Volume Oscillator was in downtrend. This suggested a somewhat timid bearish move. The ADX, however, showed that DOGE had a tendency to decline in its directional trend.
At the time of writing, DOGE was in a crucial position. It could see near-term gains if the ten-month trendline support upholds. However, the bearish crossover on the 20/50 EMA has confirmed the bearish pressure to the sellers’ benefit in the medium-to-long term. The discussed targets would remain valid.
Given DOGE’s 71% 30-day with BTC, the latter’s movement should also be kept an eye on.