Dogecoin price is facing resistance near $0.44 with various signals pointing to a bearish turn.
Experts have identified declines in the market, indicating that the price of the cryptocurrency is correcting.
TD Sequential Signals Price Correction
In the 12-hour chart of Dogecoin, the TD Sequential indicator gave a sell signal.
This indicator is popular among traders because it shows that a trend may be reversing. A “9” sell signal has appeared, which indicates that the bullish movement has reversed.
Besides this signal, analyzing the recent price movements, Dogecoin price failed to cross the resistance level of $0.44.
This outlook is consistent with the indicator’s forecast of a likely price correction.
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Since such signals indicate a build-up of selling pressure, traders can expect a change in trend.
MACD and Bull Bear Power reflect bearish momentum
Additionally, a bearish signal in the Dogecoin market is given by the Moving Average Convergence Divergence (MACD) indicator.
Currently, the MACD line is below the signal line, suggesting that sellers are beginning to dominate the market.
The bearish sentiment is further supported by the negative values of the MACD histogram.
These trends imply that any further efforts to increase the price could lead to increased sales activity and therefore lower prices in the short term.
More so, the Bull Bear Power (BBP) indicator is also fueling the bearish sentiment in Dogecoin price. The latest readings present negative signals indicating that the bears are dominating the market.
This indicator, which highlights buying and selling pressure, shows that selling pressure is much higher in current market conditions.
Additionally, this bearish dominance is crucial for Dogecoin’s price performance as it still struggles to break through resistance levels.
The relative weakness in buying strength could mean that the cryptocurrency will be vulnerable to further declines in subsequent sessions.
Dogecoin price resistance at $0.44 limits upward movement
Dogecoin price has been facing the challenge of surpassing the $0.44 level for some time. This level constituted an obstacle to the growth of buyers, thus limiting upward movements.
Further attempts to break above this level have been limited by selling pressure signaling that this level constitutes a significant obstacle.
However, the inability to reverse the trend at this level is compounded by signals from the TD Sequential, MACD and BBP indicators which are all bearish.
For this reason, traders and investors are fond of this level, as the price can continue to fall without reversing in the near future.
At the time of going to press, Dogecoin Price is trading at $0.3945, down 5.40% in 24 hours. However, volume jumped 16.80% to $7.16 billion, suggesting increased activity.
The price faced immediate resistance at $0.4171 before a sharp decline. Market capitalization fell to $58.25 billion, reflecting bearish momentum amid strong selling pressure.