Dogecoin correction from $0.7 takes a pit stop at $0.5.
The prevailing technical levels send bearish signals, hinting at a continuing downtrend.Dogecoin recently achieved the wish of April’s failed “Doge day” as users and speculators pumped the price to $0.7. The primary mission was to pull DOGE above $1. However, it appears that profit-taking took precedence, adding weight to the overhead pressure.
A retreat came into the picture with Dogecoin diving under $0.6. Support seems to have been established at $0.55, and if it is strong enough, the potentially massive correction will be avoided altogether.
Dogecoin technical picture flipping bearish
The Moving Average Convergence Divergence (MACD) has also started to drop from the recent high of 0.075. As the indicator closes the mean line (0.00) gap, bearish pressure intensifies. Moreover, the MACD line (blue) has crossed beneath the signal line and is currently widening the gap. A more extensive divergence also implies that the sellers’ influence in the market is growing.
Simultaneously, the Relative Strength Index (RSI) has been ejected from the overbought area and is fast approaching the midline. The sharp drop reflects the increase in seller dominance. A continued movement toward the oversold could trigger massive losses.
Note that support at $0.5 must hold to avert the potential losses and perhaps mark the resumption of the uptrend. Bulls must focus on settling above $0.6 to allow the focus to shift to $0.7 and $1, respectively.