Dogecoin price analysis: Will DOGE/USD dip and test the support around $0.07 soon?

It is a bearish day for Dogecoin price analysis as the market has been fairly volatile and the overall movement of DOGE/USD has been towards the downside. DOGE/USD has been consistently bearish for the last three days and in the bigger picture, the next support level is set around $0.0714. Is Dogecoin headed toward that level? Well, it is possible.

coin360 1
Cryptocurrency heat map by Coin360

The crypto heat map is showing strong bearish signals, as Ethereum has fallen significantly by 6.26 percent while Bitcoin is down by 3.38 percent. So the sentiments are very negative and the bulls seem extremely exhausted.

1-day Dogecoin price analysis
Dogecoin Price Chart by TradingView

Since the last couple of days, the bears have been dominating the market. After DOGE/USD set a local high at $0.1118 on the 5th of December, the market took a downward turn. Right now, the RSI on the daily chart is suggesting the further possibility of a dip. However, the market is now slowly moving toward the underbought side, so we might see a reversal soon.

24-hour Dogecoin price analysis

1-hour Dogecoin price analysis
Dogecoin Price Chart by TradingView

In the last 24 hours, Dogecoin had the biggest dip between 8:00 (UTC) and 10:00 (UTC). Furthermore, the market was very volatile. Right now, Dogecoin’s RSI is giving massively underbought signals. It appears that DOGE/USD might have set local support at $0.0800 and from here, we might start seeing some recovery in the short term. However, due to the market’s negative sentiments, nothing can be said with full certainty. After all, the local support has not been confirmed yet.

4-hour Dogecoin price analysis

4-hour Dogecoin price analysis
Dogecoin Price Chart by TradingView

The 4-hour Dogecoin price analysis chart gives us even more bearish signals. For the 4th interval in a row, Dogecoin has remained highly bearish. The RSI is currently at 25, again suggesting that even in the bigger time frame, Dogecoin is heavily underbought. The MACD analysis also shows an increasing negative momentum. However, it is not clear whether the local bottom has been formed yet because the support is yet to be confirmed.

Dogecoin price analysis: Conclusion

Overall, Dogecoin price analysis has heavily negative sentiments, and hence, it is not a good time to invest in Dogecoin for short-term gains. The local support has not been confirmed yet. There could be a reversal, but it is wholly based on uncertainty. Like always, make sure that you are only investing what you can afford to lose.

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