Warning: The conclusions of the following article are the sole opinions of the author and should not be construed as investment advice.
The Dogecoin market has kept its investors hooked, despite high volatility. The digital asset, despite its depreciation, remained among the best on CoinMarketCap with a market cap of $ 30.63 billion at the time of publication. In fact, the crypto-asset had a higher market cap than Polkadot, Uniswap, Litecoin, and Bitcoin Cash.
However, following the current market theme, its value has indeed gone down. DOGE has lost 67% of its value since its peak in May and was trading at $ 0.2354 at the time of writing.
Dogecoin Daily Chart
Dogecoin’s daily chart highlighted the price drop since May. The falling price of DOGE was locked in a descending channel. DOGE tested the support level at $ 0.2270 and crossed it once. With the asset again at an inflection point, it could test this level again.
The Dogecoin market continued to maintain high volatility which may have pushed the value of DOGE down on the charts. As the asset continued to trade near its support level, the market was also noting an increase in selling pressure. This increase in pressure could push DOGE down 25% to $ 0.16623.
The directional movement index highlighted the importance of the southward pressure in the market. The -DI was above the + DI, a sign of downward pressure. However, the gap between the two lines had narrowed. This suggested that while the downward pressure was dominant, it had also reduced considerably.
Meanwhile, the stochastic RSI represented the DOGE nose-down from the overbought zone as it passed the breakeven point. When the asset started to consolidate at $ 0.2270, the selling pressure kicked in. DOGE may fall into the oversold zone if the price loses its support level.
DOGE’s price, at the time of publication, was holding the support level at $ 0.2270. The asset broke through this support once and appeared to test it again. The market was dominated by market sellers, but if the asset holds the support level, we may see prolonged consolidation.