Signs of weakness are appearing in the market, and the price of Dogecoin is at a critical moment.
The dog-themed cryptocurrency Dogecoin (DOGE) has dropped nearly 7% in the past 24 hours, as signs of weakness begin to emerge across the crypto market, with major cryptocurrencies showing early signs of profit-taking.
As of the time of writing, Dogecoin has fallen 5.77% in 24 hours to $0.1888, with a weekly decline of 0.30%. The 24-hour trading volume for Dogecoin is 6.92 billion DOGE, approximately $1.28 billion, with a drop of 17%.
Although market sentiment remains mostly optimistic, several cryptocurrencies are currently hovering near local resistance levels, prompting cautious traders to lock in profits.
Dogecoin has been consolidating between $0.14 and $0.26 for several days, indicating buying near support levels and selling near resistance levels.
The price of Dogecoin reversed after reaching a high of $0.206 on June 11, approaching the daily 50-day moving average of $0.202. If the price decisively breaks through the daily 50-day moving average, it could rise to $0.26, close to the daily 200-day moving average.
On the other hand, if the price of Dogecoin drops significantly from the daily 50-day moving average, it may fall to $0.16. Buyers must push the price to break through the resistance level of $0.26 to initiate a new upward trend, with the ultimate target pointing to $0.38.
