DOGS has faced notable downward pressure over the last 24 hours, leading to concerns about whether the bulls can stage a comeback. Despite minor attempts to reverse the trend, DOGS remains under heavy selling pressure. This analysis explores the recent price movements and examines key indicators to determine whether bulls can reclaim control.
Falling Channel Pattern Weighs on Price
The DOGS/USDT chart shows a clear falling channel pattern, with DOGS struggling to break out of this downward trajectory. The cryptocurrency has been trading within a confined range, failing to establish a solid recovery despite brief periods of upward movement. The consistent lower highs and lower lows reflect a market that is finding it difficult to regain bullish momentum.
EMA Confluence Indicates Resistance Levels
A critical aspect of this market is the EMA alignment. DOGS currently trades below all the major EMAs: 20, 50, 100, and 200. The closest resistance level is the 20 EMA at $0.0011122, followed by the 50 EMA at $0.0010820. These resistance points suggest that any potential recovery will face significant hurdles, and DOGS will need to break above these levels to ignite a sustained uptrend.
The 200 EMA at $0.0012048 represents a more substantial resistance barrier. For DOGS to turn bullish, it must break above this level and maintain it as support. However, the current price action suggests that reaching this target may be challenging without a major shift in market sentiment.
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ASO Indicator Signals Ongoing Bearish Pressure
The Average Strength Oscillator (ASO) provides further insight into the market dynamics. The red line, which measures bearish momentum, remains above the blue line (bullish momentum), signalling continued selling pressure. As of now, the red line stands at 57.39, while the blue line lags behind at 42.60. This imbalance highlights that sellers still have the upper hand, and without a shift in this dynamic, DOGS may continue to face downward pressure.
Outlook: Can Bulls Reclaim Control?
For DOGS, the path to recovery will require significant bullish momentum. The key to a successful reversal lies in reclaiming support above the major EMAs and closing the gap between the ASO lines. Until these conditions are met, DOGS remains vulnerable to further downside.
Traders should monitor the EMA levels and the ASO closely for any signs of a bullish crossover. If bulls push the price above the 200 EMA, it could signal a stronger recovery, but patience and vigilance are advised for now.
