Dogecoin [DOGE] Drops to Support Zone as Momentum Becomes Bearish
Dogecoin (DOGE) is a cryptocurrency that has been trading in a range between $0.08 and $0.09 for the last six weeks. Recently, the price of DOGE dropped to the lower end of the range, close to the $0.078-$0.08 support zone. This has caused the Relative Strength Index (RSI) to become bearish and the On-Balance Volume (OBV) to decline. The 90-day MVRV metric has also dropped due to profit taking and the 90-day dormant circulation has not seen any significant spikes. Although the market is bearish, the $0.078-$0.08 support zone could offer a good risk-to-reward buying opportunity. However, if the daily session closes below this level, the bias would flip bearish and could cause prices to drop further. For this reason, traders should be cautious when investing in Dogecoin, as there is a possibility of a sharp southward move. Bitcoin (BTC) could also influence the price of DOGE, as a 5% drop in BTC could mean a drop in DOGE. Ultimately, traders should make sure to do their own research and follow the market closely before investing.
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