Dogecoin Faces Further Decline On Close Below $0.28: Analysis

What Happened: According to a recent AMBCrypto technical analysis, Dogecoin's price rested on support located in the $0.28 area and its 12-hour 200-candle simple moving average.

Since the analysis was first published, the coin has already lost the support and dropped down to $0.2734 as of press time.

Per the report, Dogecoin had an opportunity to start an uptrend when it broke over $0.28 on August 13, but then it failed to hold its price above $0.35, which invited bearish sentiment.

More downside was invited by the coin's price performing a symmetrical triangle and broke the $0.28 support, which has been in play since the coin broke new highs in early April.

Why It Matters: Bulls could have been spurred by the 12-hour 200-candle simple moving average close to crossing over the 50-candle simple moving average, which would have been an uptrend sign suggesting a possible market reversal.

But bears are also reassured by the Awesome Oscillator showing weakness and threatening to move below the half line for the first time in over three weeks, while the directional movement index showed further bearish confirmation as the -DI crossed above the +DI, indicating a trend switch.

What Else: The analyst concludes that most indicators suggest an extended decline is on its way, especially if the coin were to lose the $0.28 support as it did.

The report follows a recent analysis suggesting that Dogecoin is facing a major downturn that will see it reach the $0.22 price level.

Earlier this week, a Motley Fool report highlighted how little use the Dogecoin blockchain sees despite it being one of the seventh biggest cryptocurrencies by market cap.

The report's author also claims that the coin's value is largely dictated by the speculative actions of few wealthy individuals.

Price Action: According to CoinMarketCap data, Dogecoin is currently trading at $0.2734 after seeing its price decrease by about 6.66% over the last 24 hours.