After almost twenty days of retracement, Dogecoin looks like it found its support level at $0.048. Here’s what to look for in the coming days
Fundamentals and past price performance
Dogecoin is a cryptocurrency based on the “Doge” Internet meme. Dogecoin’s creators envisioned it as a fun, light-hearted project that could possibly have greater appeal beyond the crypto audience as it was based on a meme.
Dogecoin’s recent price action was caused by market hype generated by the notorious Wallstreetbets Reddit group and the Tesla CEO Elon Musk. However, it seems like the previous price surges were not just pumps & dumps, as Dogecoin has seen a 100% month-over-month increase in the number of addresses that hold DOGE.
— Block.io (@blockio) February 18, 2021
When it comes to its weekly performance, DOGE managed to post gains of only 0.80%. However, this outperformed both Bitcoin’s 2.28% loss and Ethereum’s 2.77% loss. Dogecoin is currently the 14th-largest cryptocurrency by market cap, boasting a value of $6.57 billion.
At the time of writing, DOGE is trading for $0.0515, which represents a price decrease of 26.58% when compared to the previous month’s value.
DOGE/USD daily chart price analysis
Dogecoin has been trending down for over twenty days, with its price trying to flatten out and find support at various levels. However, DOGE seemingly found its much-needed support at the 50% Fib retracement level.
DOGE/USD daily price chart. Source: TradingView
On the other hand, its immediate upside is blocked by the 21-day EMA which may pose a problem. At the moment, it is acting as a pivot point that decides the short-term future of DOGE. Only a daily close above it would be a bullish scenario, while a close without managing to pass the EMA could cause a further downturn.
DOGE’s RSI on the daily timeframe has flattened out. Its current value is sitting at 51.21.
DOGE/USD hourly chart price analysis
Zooming in for the hourly time frame, we can see that DOGE found its support in the 50% Fib retracement level of $0.0481, and that its price has finally pushed up. However, Dogecoin is currently underperforming the vast majority market.
DOGE/USD 1-hour chart. Source: TradingView
DOGE is currently supported by both the 21-hour and 50-hour EMAs, which may play a crucial role in pushing the cryptocurrency up.