The price of DOGE gave in to selling pressure on August 17, however, it has not been the only altcoin that has seen considerable losses. To be more specific, the favorite cryptomeme of many fell from its psychological resistance, located at US$ 0.089, to its current price at US $ 0.066, losing a little more than 25% in a matter of seconds.
In the last 24 hours it has lost 3.43% and accumulates a weekly loss of 13.97% as we can see from CoinMarketCap.
Dogechain is an important catalyst for DOGE prices
The rise we saw days ago in DOGE can be credited to the launch of Dogechain. It is a second layer network of Dogecoin, where you can work with dApps, DeFis and NFTs.
Certainly, it is a project that is just over a week old, and in a very short time it has already captured the attention of many. It already even has 4 unaudited decentralized exchanges…
Considering that we are in a totally bear market, we can say that its launch has been a success. So, when there is a bull market, it is certain that we will see DOGE testing very interesting levels.
Technical analysis: daily charts
If we have a realistic goal thinking in the short and medium term, we can consider that DOGE has concluded its winning streak. At the moment, a bullish channel is visible on the daily charts, which broke downwards on August 19 along with the rest of the cryptocurrencies.
The collapse in DOGE prices was more than expected: an important resistance had been reached, the volume of purchases was low, indicating that there were only retailers, and in addition, the RSI pointed to overbought and the MACD showed weakness … Certainly, there would be a pullback, and this was finally confirmed when the Japanese candles crossed below the 25-period EMA.
After the 25-period EMA crossed to the downside, the bullish channel was broken, and now we have to keep an eye on important levels. Starting, with the support zone that is located at US $ 0.06164, because in the short term we will see DOGE retreating to there. However, at the moment we are in an area with high trading volume, so it is likely that it will remain at these prices for a while; resisting the fall…
On the other hand, after this crash, it is widely likely that DOGE will make a pullback. Which means that prices will return to the resistance that is located at US $ 0.07335. Once there, a retest of the resistance will be made; that in case of overcoming it we would have free passage up to US $ 0.08952. In an opposite case, we would see continuity in the crash, up to US $ 0.05026.
The information in this content should be taken for informational purposes only, not intending under any point of view to urge the purchase / sale of financial assets.