Dogecoin continues to face selling pressure as its price struggles to gain strength above the $0.1760 resistance level. After a mild intraday rebound, the token remains confined within a descending channel that has defined its trend throughout June.
With its price slightly above the current $0.1715 margin, Dogecoin has rebounded off the support area of $0.1650 but still does not have the volume to push through its downward pattern. Price activity is narrow within primary Fibonacci levels, and sellers are keenly defending upper points of resistance.
Short-term signals prove that bearish momentum remains dominant. On the 4-hour chart, Dogecoin is currently below its 20, 50, 100, and 200 exponential moving averages. The moving averages on the hour chart are slanted downward, indicating a strong resistance lying above.
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The Supertrend indicator is in a sell signal, and resistance can be seen at $0.1833. Also, the Bull Market Support Band remains well anchored at positions between $0.2000 and $0.2082, which indicates the extent to which Dogecoin may appear to regain medium-term bullish territory.
Volatility indicators such as Bollinger and Keltner Channels are converging, indicating a direction of price action. It should be noted, though, that because this tightening is happening below resistance, the odds of a move to the downside are elevated unless bulls take back control with volume.
Weak Momentum Signals Suggest Limited Buyer Commitment in the Current Range
Momentum tools are also showing weakness, with the Relative Strength Index climbing to 56.6 but still reflecting limited strength. The MACD indicator is at a flat level, the Awesome Oscillator is near the center line, and the directional shift is not very strong.
Once more, the Directional Movement Index readings support bearish control, as the -DI line stays above +DI, and the ADX position has crossed 30, a sign of a robust downward trend. The change Momentum Oscillator has been ticking up, but that is not a sign of significant buyer interest.
Source: Tradingview
Key support for Dogecoin stands between $0.1600 and $0.1650, with any breakdown likely to test $0.1555 or even $0.1463. On the bright side, $0.1766, $0.1855, and the important level of $0.1940 are the next difficulties that will be encountered.
Unless Dogecoin breaks above $0.1760 with strong buying volume, the short-term trend is expected to remain under bearish control.
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