DOGE May Drop Back Below $0.05786 in the Next 24-48 Hours

The price of Dogecoin (DOGE) seems to have recovered slightly from the crypto market onslaught that occurred over the past week. Together with many other cryptos, DOGE printed a 24-hour gain according to CoinMarketCap. Its 2.26% gain over the past day meant that the meme coin was trading at $0.06203 at press time.

This recent gain was not enough to flip the altcoin’s weekly performance back into the green, however. DOGE’s price was still down more than 14.65% over the past 7 days. In addition, DOGE was able to outperform the crypto market leader Bitcoin (BTC) by 0.84% over the past 24 hours.

DOGE was also trading closer to its 24-hour high of $0.06251, while it set a daily low of $0.0591. Over the past day, the meme coin also experienced a drop in its total daily trading volume. At press time, DOGE’s trading volume stood at around $494 million, which was a decrease of 38.45% compared to the previous day’s total.

Daily chart for DOGE/USDT (Source: TradingView)

From a technical perspective, DOGE’s price dropped below the key support level at $0.06308 over the past 48 hours following a 11.11% drop yesterday. This drop also resulted in the meme coin’s price temporarily breaking below the next crucial support level at $0.05786. It was able to recover somewhat to close yesterday at $0.06175.

Technical indicators on DOGE’s daily chart suggested that there was overwhelming sell pressure for DOGE. The 9-day EMA line was positioned below the 20-day EMA line after breaking bearishly below the longer EMA line on 22 April 2023. Since then, the two technical indicators have been strong resistance levels for the crypto’s price.

Should DOGE’s price continue to fall in the next 24-48 hours, it may then flip the aforementioned support level at $0.05786 into resistance. On the other hand, a daily close above $0.06308 within the next 48 hours will see DOGE climb to $0.06930 in the following couple of days.

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