Dogecoin Under Pressure: Price Squeezes Between Moving Averages

Dogecoin (DOGE) price action is currently facing significant pressure, trading at $0.21529, a 2.27% decline over the past day. The price is facing intense pressure, squeezed between key moving averages and testing a vital support level that has been a battleground for buyers and sellers.

On September 4, the Doge price dropped consistently in the Asian trading session after facing a reaction at $0.223, yesterday. At the time of writing, the price on binance as per TradingView data was $0.2143, testing a crucial support, shown in the chart below. At the same time, CoinMarketCap data showed trading volume of 1.78 B in the last 24 hours.

As shown on the chart, Dogecoin’s price has been forming lower highs, indicating a consistent overhead resistance (marked by the descending dashed line). This pattern suggests that buying momentum is weakening with each rally attempt.

A crucial battle is unfolding around the $0.214 support level, a horizontal line that has been repeatedly tested. The candles are seen hovering around this support, indicating a strong defense by buyers at this psychological and technical barrier.

A new point of interest is the squeeze forming between two key moving averages:

• The 50-day Simple Moving Average (SMA), represented by the orange line, is currently sitting above the price.
• The 100-day Simple Moving Average (SMA), represented by the blue line, is positioned below the price.

The price is now being pressured directly between these two moving averages. This compression often leads to strong price movements. As the market builds energy before making a breakout in one direction or the other. If the price breaks below the 100-day SMA, it could signal further downside. The next support DOGE could find is at $0.17 which was the low point of August. 

Conversely, a decisive move above the 50-day SMA could indicate a bullish resurgence. With this price can re-enact the July rally and hopefully break the $0.4 this time.

Also Read: Stellar Upgrade Triggers XLM Trading Halts as Price Struggles at $0.37

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Crypto asset investments carry regulatory risk and may not be suitable for all jurisdictions.