cryptocoin.com We take a look at what Dogecoin needs to do to attract individual investors back to the market. While Dogecoin (DOGE)’s recent losses are on par with most of the top ten cryptos, it’s important to understand its position before the September 7 sell-off. Before the decline, prices were moving down after forming a top at $0.35.
Dogecoin metrics
While higher levels are ripe for buying, DOGE disappointed bullish watchers as prices dropped below the $0.30 and 23.6% Fiboancci level. With individual traders less interested in the popular meme, DOGE had to push above certain levels to attract more attention to its market. At the time of writing, DOGE was trading at $0.247, down 0.6% in the last 24 hours.
A closer look at DOGE’s chart shows that prices are moving in the down channel even after the last sell-off. The pattern often sees a breakout to the upside, but there was a chance of breakout if buyers failed to adapt quickly. A close below the lower trendline could trigger another 11% drop towards a defensive area of $0.21. According to Analsit’s assessment, a decisive move below $0.232 would herald such an outcome.
To dismiss this scenario, buyers will need to respond at the 200-SMA (green) and force an upward move. According to analyst Naqvi, an upward breakout will likely occur when the DOGE successfully closes above the downward channel average. A close above $0.320 from there will allow the bulls to continue higher.
On Awesome Oscillator, momentum has been bearishly neutral, a situation that has remained intact over the past two weeks. Similarly, the RSI has not yet fully fallen into the bearish zone and has flattened between 40-45. However, some uptake can be expected in the short term as candles are trading at the lower end of the Bollinger Bands, according to Analyst Naqvi.
Conclusion
Considering DOGE’s current market dynamics, lower volumes and declining volatility may actually be positive. This, according to the analyst, will reduce the likelihood of a comprehensive decline if DOGE closes below the 200-SMA. On a positive note, the chances of a breakout were slim as prices were trading at a key support line and the lower end of the Bollinger Bands. However, DOGE needs to break above the September 6 high of $0.320 to attract bullish traders back to the market.
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