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Dogecoin price correction slows down as DOGE bears book profits

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  • During a flash crash, Dogecoin price has taken out a few pivotal support elements.
  • DOGE downtrend keeps continuing but could see a U-turn today or tomorrow.
  • Expect investors to pick up the sharp discount in DOGE discounted price action and see a quick pop back towards $0.2630.

Dogecoin (DOGE) saw a flash crash on Saturday, as Bitcoin made a similar move and dragged most of the other cryptocurrencies with it. As bears are enjoying the downtrend, a halt and U-turn might be just around the corner as shorters have not much profit left on the table to close out their positions. Investors in DOGE price action are looking to pick up some hefty volume as the price is at an attractive discount.

Dogecoin bulls return to the scene as the discount is irresistible

Dogecoin price saw its price spiral further to the downside as the downtrend did not look to come to a halt over the weekend and only saw acceleration as Bitcoin pulled a flash crash on Saturday. With that, bulls got alarmed that bears have shot themselves in the foot by putting DOGE price action in oversold under the Relative Strength Index (RSI), further limiting any down moves. By this, bears will start to scramble to book profits, for which they need to go to the buy-side volume and start buying-in to close out their short positions.

The downtrend already looks to be slowing down as DOGE price does not look able to break below $0.16. That same level already provided support on Saturday and halted the falling knife. As bears will need to book profits, they need to buy DOGE, and as investors are looking to buy DOGE coins at this discount, expect a massive buy-side demand to come in and pump price action back up towards $0.25 by the end of this week.

DOGE/USD daily chart

DOGE/USD daily chart

If the current turmoil in cryptocurrencies keeps persisting, and Bitcoin would extend its selloff from Saturday, expect the price to test and break the area at $0.16 and look for further support down the line towards $0.1 with the monthly S2 as support and the low from mid-April. As the RSI by then will have gone further into oversold, expect any further moves to be minimal and open for a bullish reversal.

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