Bitcoin

DOGE Extends Recent Declines, Falling by Nearly 15% on Friday – Market Updates Bitcoin News

August 19, 2022

Dogecoin fell for a third consecutive session on Friday, with the token dropping by almost 15% in today’s session. As of writing, the global cryptocurrency market cap is roughly 8% lower, with the majority of the top 100 in the red. Filecoin was another notable mover, falling by nearly 20%.

Dogecoin (DOGE)

Dogecoin (DOGE) was trading lower on Friday, with the meme coin falling for a third straight session, as crypto markets moved deep into bearish territory.

The drops in price saw DOGE hit a low of $0.06828, with bears attempting to take the token closer to a new floor of $0.0660.

Friday’s decline saw DOGE/USD hit its lowest point since August 10, when prices were trading marginally above the support point mentioned above.

Looking at the chart, this latest decline comes as the 10-day (red) moving average (MA) has shifted direction, and now looks to be trending downward.

This indicates that a potential cross with the 25-day (blue) MA could be on its way, which usually means the beginning of a downturn.

In addition to this, the 14-day relative strength index (RSI) is now hovering at the 46.55 level, which is its weakest point since August 3, and this comes two days after it was tracking at 71.58.

Overall, it appears that, being overbought, traders have liquidated some previous positions, with bears taking the opportunity to reenter, as such shifting market sentiment.

Filecoin (FIL)

Whilst DOGE was down by nearly 15%, filecoin (FIL) was down by almost 20%, resulting in it being one of today’s biggest losers.

FIL/USD slipped to a low of $6.59 earlier in today’s session, which comes roughly two weeks after trading close to $10.00.

Today’s decline has pushed filecoin to its weakest point since late July, when the token was trading below $6.00.

Due to Friday’s sell-off, FIL was within touching distance of a floor at $6.40, however bulls pushed price higher, rejecting the breakout attempt.

As of writing, filecoin is trading at $6.69, which is approximately 18.21% lower than yesterday’s high.

This decline has pushed the RSI to a reading of 40.56, which is the lowest level it has touched in nearly a month.

There remains some optimism that bulls will buy this current dip, however, overall market pressure from bears could lead to the token falling to, and possibly below, $6 this weekend.

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Will Friday’s sell-off extend into the weekend? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.