Dogecoin shows a slight improvement in its price action as there is a slight gain in the last dip. Technicals were extremely bearish but have turned bullish with a swift positive trend. July 17 marked the beginning of a fresh bullish crossover, but this indication can soon turn negative without a good buying momentum and action by enthusiasts.
The jump in volume and price on July 18 has given new life to the dimming hopes of DOGE enthusiasts. Market capitalization has also improved by a good USD 1 billion to USD 8.85 billion, indicating the better-placed ranking of Dogecoin at the #10 position.
Dogecoin seems to be trapped in a consolidative price action that is facing stiff resistance from the 50 EMA curve. Will DOGE break this resistance? Check our Dogecoin prediction to know the answer!
Although some positive trends combined with the technical indicators can be seen, there is a high scenario for further consolidation until 50 EMA comes under the zone. Overcoming the resistance of 50 EMA is a critical aspect that price action needs to conquer before moving in the positive direction.
YTD price momentum being extremely negative, Dogecoin will have to upscale tremendously to reclaim similar levels. The bullish momentum is often dissuaded by the poor performance of Bitcoin and profit booking attempts after each good swing movement.
A profit booking for Dogecoin could be coming up, pushing the prices further below as the price action has consistently lost strength before the previous peak. Today’s price action could also be an affirmation of a trap-like situation being built up on Dogecoin.
The movement of DOGE this week would mark the affiliation in a negative direction or provide strength to move towards immediate resistance. DOGE needs multiple days of double-digit buying movement to take advantage of the changing tide of cryptocurrencies.