Dogwifhat Price Plummets – Is $1.50 the Next Support Level?
The Dogwifhat price has been experiencing significant bearish pressure, as indicated by the recent movements and technical indicators on the 4-hour chart. Over the last few periods, the closing prices have been showing a downward trend, moving from $1.6483 to $1.6128. This decline is further supported by the position of the 9 EMA and the 20 EMA, which are both trending lower, with the 9 EMA currently at $1.6524 and the 20 EMA at $1.7481. The EMAs’ positions suggest continued bearish momentum as the shorter-term EMA remains below the longer-term EMA.
Dogwifhat Price Technical Analysis
Currently, the MACD indicator also aligns with this bearish sentiment. The MACD line has consistently been below the signal line, with the histogram remaining in negative territory. This indicates sustained downward momentum. Meanwhile, the latest MACD readings show a slight narrowing of the histogram, suggesting a possible reduction in bearish pressure. However, this is not yet a strong indication of a reversal.
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Furthermore, the Relative Strength Index (RSI) has been lingering in the oversold region. It has recently moved from 28.06 to 32.37. This low RSI level indicates that the asset is currently oversold, which might lead to a short-term corrective bounce. However, the overall bearish trend remains intact unless a significant change in market sentiment occurs.
Given the current technical setup, the Dogwifhat price is likely to face resistance at key levels. The immediate resistance is around $2.123, followed by a stronger resistance at $2.1517. If the price manages to break through these levels, the next significant resistance to watch is at $2.4656. However, given the bearish indicators, a breakout above these levels seems unlikely in the short term.
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On the downside, if the bearish momentum continues, traders should watch for a potential test of lower support levels. A further decline could push the price towards support around the $1.5000 region.
Potential Trader Ideas
For traders looking to enter long positions, it would be prudent to wait for a confirmed reversal signal. This could be indicated by a bullish crossover in the MACD or a move of the RSI out of the oversold territory, coupled with a price break above the 9 EMA and 20 EMA. Entry points around the $1.5000 support level could be considered for long trades with a tight stop-loss to manage risk.
Conversely, short trades could be considered at the current levels or on a bounce to the aforementioned resistance levels, with stop-loss orders placed just above these resistance points to protect against potential breakouts. Given the strong bearish indicators, short trades might offer a favorable risk-to-reward ratio in the near term.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
