Biggest Movers: DOGE Drops Towards $0.05900 Support Level Despite Elon Musk Comments
Dogecoin was down for a third straight session, despite Elon Musk stating earlier this week that Tesla was still holding the token. Polygon was also down, falling by almost 10% to start the weekend, as cryptocurrencies fell back into the red on Saturday. As of writing, the global crypto market cap is trading 4.81% lower.
Polygon (MATIC) dropped by almost 10% to start the weekend, as bearish pressure intensified in crypto markets.
Saturday saw the token slip to an intraday low of $0.8236, just days after nearing a breakout above the $1.00 mark.
Today’s drop comes as bears now look to be targeting a floor of $0.7250, which was hit last Sunday.
Recent declines in MATIC/USD have come following the relative strength index (RSI) hovering deep in overbought territory.
The index hit a resistance point of 79.39 earlier in the week, which was the highest reading for the indicator since October 2021.
In addition to this, after crossing in late June, the 10-day (red) and 25-day (blue) moving averages seemed to have matured to a peak, which could signal further downside moves in upcoming sessions.
Dogecoin (DOGE) was in the news this week, as Tesla CEO Elon Musk confirmed that the company still had its holdings in the meme coin.
However, since then, prices of the token have fallen in consecutive sessions, with today’s drop pushing DOGE/USD to a low of $0.06639.
Overall, the token is still up 7.34% from the same period last week, which came following a surge to a weekly high of $0.0775 on Thursday.
Similar to MATIC, price declines in DOGE started once a ceiling of 57 was reached in the RSI indicator, opening the door for returning bears in the process.
Should momentum continue to trend downwards, we could see the meme coin falling back to its long-term support point of $0.05900.
There is some hope for bulls, however, in the form of the 10-day moving average (red), which looks set to cross the 25-day trendline, which could help resurrect price strength.
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Could we see dogecoin fall to a floor of $0.05900 in upcoming sessions? Let us know your thoughts in the comments.
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.
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