DOGE Slides: Will Bears Push Even Lower or Bulls Take Back Control?

• DOGE price is holding around the $0.12 mark.
• The daily trading volume has slipped by over 21%.

The mixed sentiment across the crypto assets displayed red and green charts. But deep down, all the digital tokens are hovering on the downside. With only a few hours left for the new year to kick in, the meme coin market cap has settled at $42.10 billion after a brief spike. Meanwhile, Dogecoin (DOGE), the dog-themed asset, has lost 1.12%.

In the early hours, the meme coin was trading at around a high level of $0.1249. With multiple ups and downs and a bearish shift in the market, the Dogecoin price slipped toward a bottom range of $0.1225. If the bears continue to strengthen, the price action is likely to push further downward. 

At the time of writing, DOGE traded at $0.1231, with the market cap found at $20.65 billion. Significantly, the daily trading volume has dropped by over 21.43%, reaching the $703.65 million mark. As per Coinglass data, the market has observed a liquidation of $611.72 worth of DOGE in the last 24 hours. 

Breakout Bounce or Deeper Drop for DOGE Ahead?

DOGE’s negative outlook is revealed with the Moving Average Convergence Divergence (MACD) and signal lines settled below the zero line, indicating bearish market momentum. As long as both lines remain below zero, the market tends to stay on the downside. 

DOGE chart (Source: TradingView)

Additionally, the Chaikin Money Flow (CMF) indicator is at 0.14, which suggests strong buying pressure in the Dogecoin market. Notably, the money is flowing into the asset in order to support accumulation. If the value goes up further, it likely strengthens the uptrend.

The Bull Bear Power (BBP) value of -0.00065 hints that bears have a very slight advantage over bulls. Also, the magnitude is very small, so the Dogecoin market is nearly balanced with only a slight bearish tilt. Besides, the daily Relative Strength Index (RSI) at 44.06 signals that the DOGE is in neutral to slightly bearish territory. The selling slightly outweighs the buying. A drop closer to 30 brings a potential oversold buying opportunity.

The price chart of DOGE exhibits that it might fall back toward the support at around $0.1221. Losing this range could strengthen the bearish correction and send the price into a deeper correction territory below $0.1210. Assuming a recovery, DOGE could likely rise to reclaim the $0.1241 resistance level. With the upside pressure gaining more traction, the mighty bulls could drive the asset’s price to a high above $0.1251.

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