Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Dogecoin (DOGE) is heading toward a crucial support test as broader market weakness drags it lower. Now entering its fifth consecutive day of decline, DOGE is fast approaching its 200-day Simple Moving Average (SMA), currently at $0.216.
The 200-day SMA is one of the most widely followed technical indicators on crypto and traditional markets alike. It often acts as a dynamic support or resistance, helping traders gauge the overall trend of an asset.
Currently, Dogecoin is hovering just above this key moving average, having reached an intraday low of $0.222. A decisive retest is expected soon, especially as selling pressure persists on the cryptocurrency market.
More than half a billion dollars in positions were liquidated across the crypto market on Friday as the price of Bitcoin slipped below $116,000 amid a broader market sell-off. According to CoinGlass data, $536 million in crypto positions were liquidated, with longs accounting for $406 million of this total figure.
Dogecoin was recently changing hands at $0.224, down 5.98% in the last 24 hours, reflecting the broader market drop.
Will bulls hold line?
As Dogecoin approaches the SMA 200 Daily Support, traders are watching to see how DOGE reacts to this key level. A bounce from this level could spark a renewed rally, while a breakdown may signal extended downside risk.
The broader market sentiment will also be monitored as a Bitcoin recovery could give Dogecoin bulls room to regroup.
In a positive sign for Dogecoin, Bitcoin miner Bit Origin recently completed the acquisition of 40.5 million Dogecoin for its crypto treasury.
Vladislav Sopov
U.Today Editorial Team