- DOGE price trades in a third straight bearish session as the crypto market continues to bleed.
- The 100-day SMA is crucial to Dogecoin restarting the bullish run.
- IntoTheBlock’s IOMAP model shows that DOGE sits on strong support above $0.2400.
DOGE price is trading in a third straight bearish session as bulls struggle stay above the October rising trendline. DOGE has been a strong contender in the recent crypto bull run that appears not to be over.
Therefore, investors should take the current correction as temporary which may eventually result in a massive climb.
DOGE Price Sits on Strong Support Above The 100 SMA
At the time of writing, DOGE price was exchanging hands around $0.2476 with a bearish bias and appears to be battling immediate resistance at $0.2560. Failure to hold close above this level could see the “meme coin” slide below the 100-day Simple Moving Average at $0.2464 to tag the $0.2400 psychological level.
Slide below this level could trigger massive sell orders that could see the Dogecoin price fall further to tag the 50-day SMA at $0.2348 or today’s intra-day low at below the $0.2200 psychological level, indicated by the green band.
Note that the appearance of the three black crows candlestick pattern and the nosediving Relative Strength Index (RSI) away from the overbought zone add credence to this bearish outlook.
DOGE/USD Daily Chart
Technical outlook from the daily chart shows that DOGE price sits on strong support at $0.2464 where the 100-day SMA coincides with the rising trendline.
A closure above the aforementioned level could bolster the bulls the push DOGE higher past the $0.2560. A clear bullish breakout will be realised if Dogecoin break out above the $0.2700 psychological level to tag the 200-day SMA at $0.2865. After which the next logical move would be a rally to areas above $0.3100 indicated by the red band.
The position of the MACD above the zero line validates this bullish narrative suggesting that DOGE market momentum remains positive.
Moreover, on-chain metrics from IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model indicate that DOGE’s support around $0.2464 (100-SMA) is relatively strong. This support level is within the $0.2416 and $0.2489 price range where 7.58 billion DOGE were previously bought by approximately 119,400 addresses.
Dogecoin IOMAP Chart
This support is robust to absorb any selling pressure that threatens to pull Dogecoin below this zone.
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