Dogecoin price defied a wider cryptocurrency market downturn on Wednesday to rise by 1.6 percent and trade at $1.108 at the time of writing.
Dogecoin price showed resilience amid a broader downturn in the cryptocurrency market on Wednesday, rising by 1.6% to trade at $1.108 at the time of writing. This price movement comes as DOGEUSD faces a potential turning point, with the price aligning with the 50-Exponential Moving Average (EMA) and approaching the 50-EMA level on the daily chart.
However, Dogecoin price faces limited options due to the broader market conditions and lack of institutional support. The global crypto market is feeling the heat of geopolitical tensions in the Middle East, which has led investors to adopt a cautious approach. This risk-off sentiment has seen investors reduce their appetite for high-risk assets like cryptocurrencies. Bitcoin, the market bellwether, has been trading largely sideways over the past five days and is set to register its third consecutive daily loss on Wednesday.
Dogecoin price has lacked the institutional support of yesteryears, which has played a key role in subduing its gains. During the previous crypto market rally of 2021, several institutions integrated DOGE as a payment option, and the resulting enthusiasm helped promote retail uptake.
Moreover, the emergence of meme coin mania in 2024 has diverted some of the spotlight that was previously focused on Dogecoin and Shiba Inu. Meme coins like PEPE, BOME and WIF have offered investors greater excitement than DOGE due to their higher volatility levels. As things stand, Dogecoin price’s upside is likely to be limited unless the broader market spikes.
Dogecoin price technical outlook: limited options
The RSI momentum indicator on Dogecoin price signals bullish control. With the pivot at 0.108, the upside is likely to encounter initial resistance at 0.110. However, if the momentum strengthens, DOGEUSD could clear that hurdle and move higher to test 0.113.
Conversely, moving below 0.108 will favour the sellers to take control. In that case, the first support could be established at 0.105. However, the downside could extend further if the sellers extend their control. In that case, a break below the first support will invalidate the upside narrative, and the second support could come at 0.104.
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