After Dogecoin's price fell below $0.1680 last week, it shows signs of mild stabilization today, with bulls attempting to bounce back to $0.1730.
As of this writing, Dogecoin's price is trading around $0.1720, trying to hold the new diagonal support level formed within the 4-hour timeframe. Previously, Dogecoin briefly rebounded, breaking through the key demand area of $0.1650 to $0.1680, as indicated by the first cluster of support levels.
Despite the rebound, the upward momentum remains constrained near $0.1750 - this area is reinforced by trend line resistance and the convergence of several lower highs.
The 4H 20, 50, 100, and 200-day EMA (Exponential Moving Average) remain closely clustered between $0.1716 and $0.1738, reflecting indecision and compression within a low volatility range. A clear breakthrough of this EMA area is crucial for initiating the next upward move towards $0.1807.
RSI, MACD, and stochastic RSI divergence - what changes have occurred in Dogecoin's price?
The momentum indicators on the 30-minute and 4-hour charts present a mixed short-term trend. The Relative Strength Index (RSI) has slightly retreated from overbought conditions to 56-62, while the stochastic RSI hovers around 27, suggesting that if RSI breaks, a bullish reversal trend may continue. Meanwhile, the MACD indicator remains flat but is slightly bullish above the zero line.
This pattern indicates that the volatility of Dogecoin's price has weakened before breaking above $0.1750 or below $0.1700. A successful break of the downward trend line (drawn from the high on May 5) will confirm a bullish trend, targeting a price range of $0.1800-$0.1850. However, if the price is blocked near the current supply area, it may pull back to the critical short-term support level of $0.1677.
The price of Dogecoin today depends mainly on the market's reaction to this compressed range. If it fails to effectively recover the level of $0.1750-$0.1760, it may reignite bearish sentiment.
Dogecoin (DOGE) Price Outlook for May 8: Breakthrough or Decline?
The overall price movement of Dogecoin on May 8 depends on whether the bulls can decisively break through the convergence area at $0.1750. If the closing price is above this level, it may open up upward space, targeting $0.1800 and $0.1850; if the closing price fails to break this level, it may test $0.1675 again, and even drop to $0.1640. The lower Bollinger Band also aligns with this critical downward support level.
Intraday traders should pay attention to the 15-minute trend line breaking above $0.1743 to confirm momentum. On the other hand, a drop below $0.1700 will invalidate the current rebound momentum and put Dogecoin at risk of falling towards $0.1650.
Dogecoin price updates indicate that the asset will continue to maintain range volatility in the short term, waiting for direction to become clear. Given the neutral macro sentiment and the technicals at a critical point, traders should remain cautious and react near breakout levels.
