- Dogecoin has broken the long continuing downward trend line formed in mid-December
- The token could meet a strong resistance level at $0.002
- Doji candles on price charts show uncertain trader sentiment
Cryptocurrency Dogecoin (DOGE) seems to have finally broken through the multi-month long downward trend, but chances are there that it might meet a strong resistance level at $0.002. Interestingly enough, the same price figure was the token’s support level not too long ago.
Dogecoin to Continue the Positive Momentum?
Cryptocurrencies have posted marginal gains in value since last week, with major tokens like Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Bitcoin Cash (BCH), Litecoin (LTC), and Stellar Lumens (XLM) creating green candles on price charts.
Similarly, Dogecoin also emerged as one of the top currencies that lead the mini market rally.
Per the latest technical analysis with data taken from February 14, 2019, the token looks to have breached the downward trend line it had been trading in since mid-December. However, it faces major resistance from the bears to break through the previous support level of $0.002. Although its price spike about the said figure a couple times, it quickly retreated below it.
Formation of doji candles, a term used to refer to small price movement candles on the price chart, has further solidified the uncertain demand and supply from investors.
Historically, the coin has traded within a very narrow range of $0.002 and $0.0023. The token traded within this range for three long weeks in September 2018, before spiking through it during mid-December.
It will be interesting to see if the currency manages to break through this key resistance level anytime soon. If not, expect Doge coin to plummet back to the bearish territory of $0.00177 – its 2019 low.
Needless to say, traders will keep a vigilante eye on the price behavior and technical charts of Doge coin, especially at a time when the bears seem to have established a virtual monopoly in the industry giving little to no ground to the bulls.
At press time, Doge coin sits at 24th position on the CoinMarketCap crypto table, with a market cap of $225 million and a 24-hour trading volume of $16 million.