Dogecoin price faces resistance near $0.44 with various signals hinting towards a bearish turn.
Experts have identified bears in the market indicating that the price of the cryptocurrency is correcting.
TD Sequential Signals Price Correction
In the 12-hour chart of Dogecoin, the TD Sequential indicator has given a sell signal.
This indicator, popular among traders as it shows that a trend may be reverting. A “9” sell signal has emerged, which indicates that the upward movement has been reversed.
Besides this signal, analyzing recent price movements, Dogecoin price has failed to break the $0.44 resistance level.
This outlook is in line with the indicator’s forecast of a probable correction to the price.
Since such signals are indicative of a buildup of selling pressure, traders may be waiting for a change in the trend.
MACD and Bull Bear Power Reflects Bearish Momentum
Additionally, a bearish signal in the Dogecoin market is given by the Moving Average Convergence Divergence (MACD) indicator.
Currently, the MACD line is below the signal line which suggests that sellers are beginning to dominate the market.
The bearish sentiment is further supported by the negative values of the MACD histogram.
These trends imply that any further efforts to increase the price may result in greater selling activities and therefore downwards price movement in the short run.
More so, the Bull Bear Power (BBP) indicator also fuels the bearish sentiment in Dogecoin price. The latest readings portray negative signals indicating that the bears are dominating the market.
This indicator, which points to buying and selling pressure, shows that selling pressure is much higher in the current market conditions.
Furthermore, this bearish dominance is crucial for the price performance of Dogecoin as it still struggles to break the resistance levels.
The relative weakness in buying strength could mean that the cryptocurrency will be vulnerable to further declines in the subsequent sessions.
Dogecoin Price Resistance at $0.44 Limits Upward Movement
Dogecoin price has faced the challenge of breaking the $0.44 level for quite some time. This level has been a barrier for the buyers to scale-up, thereby limiting bullish movements.
Further attempts at getting past this level have been limited by selling pressure signaling that this level is a significant barrier.
However, the inability to reverse this at this level is compounded by the signals from TD Sequential, MACD and BBP indicators all being bearish.
For this reason, traders and investors are keen on this level because the price can continue falling with no reversal soon.
At press time, Dogecoin price is trading at $0.3945, down 5.40% in 24 hours. However, volume surged 16.80% to $7.16B, suggesting increased activity.
The price faced immediate resistance at $0.4171 before a steep decline. The market cap dropped to $58.25B, reflecting bearish momentum amid strong selling pressure.
