The cryptocurrency market has sustained losses for the past few days, and further downward movement could be expected in the coming hours
The cryptocurrency market has sustained losses for the second consecutive day this week. The prices of most cryptocurrencies are down by over 3% in the past 24 hours. Bitcoin has dropped below the $48,000 level after reaching the $50,000 mark over the weekend.
Ether continues to hover above $3,100, having lost roughly 7% of its value in the last 24 hours. Dogecoin is one of the worst losers in the market over the last few hours, losing 10% of its value in the process.
Dogecoin could experience further losses over the next few hours, with the cryptocurrency market still experiencing bearish sentiment. Despite the current sentiment, the medium and long-term views of the market by most participants and analysts remain positive.
DOGE price outlook
The DOGE/USD 4-hour chart is currently bearish, with most of its technical indicators pointing to possible losses over the next few hours. The MACD line has slipped into the bearish territory while the RSI has also dropped, indicating an oversold situation.
If the current bearish trend continues, the DOGE/USD pair could test the first major support level at 0.2698 over the next few hours. The cryptocurrency market is looking bearish, and further sell-off could occur.
In the event of an extended sell-off in the broader cryptocurrency market, DOGE could test the second major support level at $0.2510.
DOGE/USD 4-hour chart. Source: TradingView
However, if the market turns around and the bulls regain control, then the DOGE/USD pair could move through the 0.2948 pivot, allowing the cryptocurrency to test the first major resistance level at $0.3136.
If the broader cryptocurrency market embarks on a bullish run, Dogecoin could have enough momentum to move past the $0.320 level before the end of the day. Dogecoin’s performance is very much linked to the broader cryptocurrency market at the moment.
The high of $0.3197 attained yesterday could cap further upside movement unless the market regains its impressive performance once again.
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Author: Hassan Maishera