Dogecoin Price Turns Red: Is the Trend Turning Bearish or Just a Dip?

Dogecoin has increased significantly over a wider timeframe. It surged 366% from October to the first week of December. However, buyers were exhausted in the first week of December and are taking profits. During this sell-off, the price of Dogecoin has dropped by 32%. The price is increasing by receiving support on the trend line, but buyers are weak and do not continue. The price slides below the trend line and continues to decrease. This is the strongest meme currency in terms of market value. Analysts are predicting another price increase after a broader time frame decline. Another price surge about to happen on Dogecoin? Trader Tradigrade is a cryptocurrency analyst who has shared his analysis of the cryptocurrency DOGE on X. He displayed a DOGE chart and noted that the price of Dogecoin is increasing according to a pattern. Based on this pattern, the price of Dogecoin may have another price increase.

He declared that the price had completed a three-year accumulation phase and had moved out of this phase. On the weekly timeframe, the price has experienced a slight decline and is ready to skyrocket soon. Will DOGE price drop to the EMA 200-day level or reach a new ATH? When writing this article, the Dogecoin cryptocurrency is trading at $0.315, down 5.32% in the past 24 hours. The market capitalization is $46.58 billion and the 24-hour trading volume is $2.54 billion. Based on the technical chart, the price is currently defending the support level at $0.300. After a period of consolidation, the price has dropped by about 6% in a day. This selling pressure may cause panic among buyers.

When the DOGE price starts trading below $0.300, strong selling pressure can be expected. The price is expected to reach the 200-day EMA as there is no support area between $0.300 and the 200-day EMA. If the price falls below the 200-day EMA line, buyers may have difficulty recovering. On the other hand, if the price holds the support level at $0.300, it could be a signal of an uptrend. Buyers can show their interest when the price exceeds the 20-day EMA. If the price remains above the 20-day EMA, a strong price increase can be observed, and the price may reach a new ATH. Analysis of Dogecoin price based on charts and expert opinions Dogecoin has undergone a significant decline in the past few days, dropping by about 23% after a substantial increase. The price is fluctuating around the important support level of $0.300, and the ability to maintain this level will be crucial. Analysts believe that despite the short-term downward pressure, the price is likely to return to an upward trend if it stays above key resistance levels, especially the 20-day EMA line. Successfully defending the $0.300 milestone could pave the way for another upward trend, potentially leading to a new all-time high. However, sliding below this level could trigger the next wave of selling and challenge the recovery process. Investors should closely monitor these developments to devise the best strategy for the future.