There is a popular saying in the stock market: “Sell in May and Go away.” It’s not May yet, but I think its best to sell Dogecoin now and go away for some time. The bulls are getting mauled up by the bears amid high volatility, and this has increased the probability that the cryptocurrency may see lower levels going ahead.
Dogecoin remains unchanged on a daily basis, trading at 48 satoshis.
A technical look at the 240-minute Dogecoin/Bitcoin price chart confirms the bearish undertone.
Dogecoin Chart Structure – In my previous analysis, I had advised that Dogecoin is a seller’s play and any rise up to 50 satoshis should be used to build short positions for a target of 47.5 satoshis. That seems to have played out perfectly as the cryptocurrency stooped to a low of 46.3 satoshis after hitting a high of 50 satoshis. The chart structure remains strongly in favor of bears even with bulls making repeated attempts at taking out the 50-51 satoshis ceiling.
Bollinger Bands – As mentioned earlier, a surge above the upper range of the BB has been unsustainable and has only brought more disappointment for the investors and long traders. The lower range is acting as the crucial support level.
Dogecoin Trading Volume – As can be seen, the volume has spiked tremendously with a fall in price and a rise in volatility. The great tussle between the bulls and the bears may end with bears having the last laugh, or so is suggested by the volume readings.
Relative Strength Index – The RSI reading fell sharply from north of 50 to touch 40.38 before paring the losses to be trading at 52.4678.
It is amazing to see that neither party is willing to loosen the grip on Dogecoin however, there can only be one winner. Technically, bears have the upper edge and hopefully, they will soon put an end to this long sideways consolidation.