DOGE Price Bounces 5% From Support Level
The cryptocurrency market has experienced considerable volatility recently. However, meme leader Dogecoin has shown outstanding strength during this time.
The last 24 hours saw Dogecoin record a dip of 5% which brought it down to a critical support level. But, the meme token then experienced a pullback of 5% that brought it to its current price.
The Action
Investors were intrigued with the latest price action, which did not come as a surprise. At publishing time, the meme coin was at a crucial support level of $0.1183.
The bulls and bears are locked in battle at this important price level. If there is a breakdown below this price, it could see DOGE record further declines in its price.
But, if the bulls manage to overcome the bears, there could be a possible reversal. This would push up the price of the meme token.
At the time of writing, data from CoinMarketCap showed that the price of DOGE had already reached $0.1233.
The last 24 hours saw the market capitalization of the largest meme token in the market grow to 17.86 billion. This was an increase of 4.91%.
Meanwhile, Dogecoin saw its trading volume record a rise of 10.54% during the same period, which pushed it to 863 million. This is another bullish sign.
More Indicators
A look at the charts shows that the Relative Strength Index (RSI) of the meme token is in oversold territory.
This shows that the level could be at a critical point and could end up resulting in a price reversal for Dogecoin.
As far as the Moving Average Divergence Convergence (MACD) indicator is concerned, it also highlighted fading pressure from the bears in the market.
The whale activity and social volume data from Santiment can also help in determining market direction. The data showed that the two metrics share an interesting correlation.
Both whale activity and social volume had recorded several spikes, coinciding with the recent price volatility.
This shows that major investors may strongly influence price action and market sentiment.
The possibilities
The liquidation heatmap data from Coinglass showed that there was considerable market tension. Key price levels have seen clusters of liquidation.
This suggests that the sudden price movement had caught investors off guard. There may be additional liquidations in the market due to this volatility and it is likely to happen in both directions.
The price of the original meme token has reached a crucial juncture. If Dogecoin successfully keeps its value above the resistance level at $0.1183, then there could be rises in store for it in the future.
But, if it drops below this resistance level, then it could result in bearish momentum for DOGE and it could dip towards lower support zones.
