In July, Dogecoin's price demonstrated strong performance, but the past few weeks have seen a decline. After reaching a five-month high of $0.28, the cryptocurrency has fallen by 30%, testing support at $0.19.
Can Dogecoin Hold the $0.19 Support?
A significant sell-off in the crypto market has led to Dogecoin's price falling below the 50-day exponential moving average (50 EMA) at $0.206 and the 200-day EMA at $0.207. However, DOGE bulls managed to hold the price near the $0.19 support level, indicating that dip buyers are still present.
DOGE Bulls Eye Rebound as Momentum Indicators Reset
From a long-term perspective, Dogecoin remains on a structural bullish trajectory, thanks to the 20-/200-day golden cross that occurred in late July. However, momentum indicators are showing signs of cooling down. The daily RSI has slipped from an overheated reading above 80 to below 50, indicating lost market momentum. If DOGE can hold above the crucial $0.19 support level, a rebound towards the $0.22–$0.24 range may occur.
Macro Headwinds Pressure Dogecoin Price
Beyond technical factors, several macroeconomic headlines have pressured risk assets recently. The introduction of new import taxes and the Federal Reserve's decision to keep rates steady have led investors to seek safer assets. Dogecoin futures volume decreased 37% to $4 billion over the past 24 hours, yet open interest remained nearly unchanged, indicating that traders are holding their positions with confidence.
Amidst the price decline of Dogecoin and pressure from the global economy, a resilient support level has been established. Successfully holding at $0.19 may spur a new rally should macroeconomic conditions improve.
