Dogecoin price in a recent couple of days showcased a weakness in its trend as they tend to revisit lower lows constantly
The asset could also experience an immense oversold market condition and post to which a notable bounce becomes mandatory
The dogecoin price rally attracted many new traders to the crypto space with its eye-catching 10000% rally. However, the asset was under the immense influence of external factors that impacted the DOGE price widely. However, the price in a recent couple of months remained low-key pointing towards a reduced user’s interest.
The DOGE price slashed the upper targets in the short-term from $1 to $0.7 and $0.5 as the rally flipped into bearish divergence. Despite multiple attempts to regain the lost momentum, yet the price remains under the control of the bears. The previous day close had showcased a possibility to attain $0.3 again but the fresh slumps made the job tedious.
The price is currently undergoing extreme oversold market conditions as it’s trading within the lower bands of the Bollinger bands. Bollinger bands identify the overbought or oversold market conditions. And hence if the price breaks down from the current levels, a notable correction could be on the cards.
A substantial bounce back makes its way out as each time the price visits the lower band, it rebounds notably. The price could continue to move sideways and oscillate between the middle and the lower Bollinger Band. The price volatility could be low as the bands can be seen converging.
The Dogecoin price currently appears to be not so good in position as the probability of a drain is high. As the MACD indicator is bearish and the RSI is trending within the lower levels, a correction could be inevitable. However, a couple of green candles at the bottom still keep the hopes of a substantial rebound alive. And hence, DOGE price could also propel high to hit $0.3 in short term. And by sustaining $0.3 successfully $0.5 also may not be distinct.