The crypto market saw profit-taking after a strong week, with major coins, including Dogecoin, plunging by more than 7%. Bitcoin's price dropped sharply on Friday from a high of $111,200 to just over $107,000 as investors weighed macroeconomic concerns.
Dogecoin mirrored Bitcoin's price action, reaching a high of $0.254 on Friday following three days of increases before plunging to a low of $0.223.
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Despite the drop, Dogecoin is still attracting speculative interest. According to Glassnode, while speculative appetite is surprisingly subdued among the top 10 coins, the Dogecoin funding rate is slightly above neutral.
What's next for Dogecoin price?
At the time of writing, Dogecoin was down 2.74% in the last 24 hours to $0.2278, but up 7.23% weekly.
Dogecoin is consolidating between $0.21 and $0.259 following a huge rise earlier in May. The daily RSI is well above the 50 midpoint, hinting at the possibility of continued consolidation in the short term before the next major move while also presenting a slight edge to the bulls.
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This optimistic view will be invalidated if the Dogecoin price turns down and breaks below $0.21. That suggests a likely range-bound action between $0.14 and $0.26.
As stated, the $0.21 level remains an important support to watch out for. If Dogecoin holds above here, the chances of it breaking above $0.26 increase. If that happens, Dogecoin might reach $0.35. There is resistance at $0.29, but it is likely to be overcome.
