Dogecoin price analysis indicates bearish momentum to follow over the next days as further upside has been rejected overnight after a more than 40 percent rally since Friday. Therefore, we expect DOGE/USD to retrace next week and retest previous major resistance around $0.23 as support.
The cryptocurrency market traded in the green over the last 24 hours. The market leader, Bitcoin, is up by 4.3 percent, while Ethereum is up by 2.46 percent. Meanwhile, Dogecoin (DOGE) is up by 20 percent and is among the best performers today.
Dogecoin price movement in the last 24 hours: Dogecoin spikes to $0.28
DOGE/USD traded in a range of $0.2222 – $0.2814, indicating strong volatility over the last 24 hours. Trading volume has spiked by 191 percent and totals $8.9 billion. Meanwhile, the total market capitalization trades around $34.8 billion, ranking the cryptocurrency in 7th place overall.
DOGE/USD 4-hour chart: DOGE prepares for a retracement?
On the 4-hour chart, we can see the Dogecoin price action rejecting further upside, indicating an upcoming reversal early next week.
Dogecoin price action has continued to rally over the weekend after a week-long consolidation in an increasingly tighter range. The previous swing high was established around the $0.23 mark on the 26th of July, indicating that bulls are taking over control over the market.
The consolidation formed earlier this week above the $0.20 mark indicated that bulls have lost momentum and that we might see another strong wave to the downside over the next days. However, on Friday, DOGE/USD started to move higher rapidly and broke past the previous high of around $0.23.
What followed was a further rally overnight until the $0.28 mark, where rejection for upside was seen. This Dogecoin price action development indicates that bulls are exhausted as of now, and a retracement is needed before further upside will be reached.
Therefore, we expect DOGE/USD to start retracing early next week and test the previous resistance of $0.23 as support. From the $0.23 mark, DOGE will likely start to rally once again and look to finally breach the next major resistance at $0.29.
Dogecoin Price Analysis: Conclusion
Dogecoin price analysis indicates bearish movement to follow over the next days as further upside was heavily rejected overnight around the $0.28 mark. Therefore, we expect DOGE/USD to retrace early next week and try to retest the $0.23 previous resistance as support.
While waiting for Litecoin to move further, read our articles on Bitcoin Futures, Physical Bitcoin, as well as Proof of Stake vs Proof of Work.