DOGE Price Analysis: Highly Influential Bearish Trendline Undermines Bullish Attempts; Buy, Sell Or Hold?

Even after the Bloodbath of June 2021, the DOGE price never breached the support zone at $0.155. However, this new year the bears finally took this leap and dropped the price below this bottom support. The price is currently trying to sustain below this $0.155, which could lead to a further down rally in this coin.

Key technical points: 

• The DOGE price faces strong resistance from the 20-day EMA
• The intraday trading volume in the DOGE coin is $1.59 Billion, indicating a 132.9% hike

Source-Tradingview

In our previous coverage of Dogecoin technical analysis, the coin price teased a bullish breakout of a double bottom pattern. However, the price failed to rise above the resistance trendline and resulted in a retracement and a downfall below the support zone between $0.16-$0.155.

Currently, the price shows higher price rejection from the support zone reflecting a retest of the bearish breakout. 

The technical chart shows the crucial EMAs(20, 50, 100, and 200) are steadily sloping downwards, indicating the bearish trend. Moreover, the 20 and 50 EMA lines are majorly rejecting the bullish pullbacks in this downtrend.

The Relative Strength Index(37) indicates a bearish sentiment among the market participants.

Retest Brings Back The Underlying Bearish Momentum Overcoming The Bullish Outburst

Source- Tradingview

The DOGE price action shows an instant formation of a bearish candle as soon as the price reaches the resistance trendline. Therefore, the price action shows a successful retest of the bearish fallout. 

The ADX (48) recovers after a sharp fall in the bearish trend momentum due to the sudden bullish outburst. However, the reversal after retest sets the bearish trend in motion, and a rise in momentum can be seen shortly.

The traditional pivot suggests the important resistance levels in the DOGE/USD chart are at $0.156, followed by a $0.168. Meanwhile, the support levels are $0.138 and $0.127.