- Dogecoin bears keep the downtrend intact within the confines of a descending parallel channel.
- The IOMAP highlighted immense resistance DOGE would face between $0.084 and $0.086.
- ApeCoin bulls must diligently defend the support at $6 to avert a potential drop to $5.
Selling pressure in the cryptocurrency market does not seem to be leaving any stones unturned with Dogecoin and ApeCoin plunging into double-digit losses. Almost the entire market was painted red, led by Ethereum’s 12.5% decline in 24 hours.
While Bitcoin has lost only 0.6%, chances of recovery above $30,000 seemed to be thinning with every passing day. As for DOGE and APE, the downtrend is likely to carry on into the weekend, especially if they lose their last lines of defense.
DOGE Set For Another Drop Before Recovery
The largest meme token lost over 10% of its value during the early hours of Friday. A descending parallel channel pattern continued to govern DOGE’s price action. More losses would come its way if the lower boundary is shattered.
For now, Dogecoin needed to rise above the pattern’s middle boundary to enact a recovery stint. However, the recovery might take longer to gain momentum due to the presence of a negative divergence with the Relative Strength Index (RSI).
The persistent downtrend towards the oversold region means that bears still are in control. Reinforcing the pessimistic picture is the Moving Average Convergence Divergence (MACD)’s sell signal.
DOGE/USD Four-hour Chart
According to the IOMAP by IntoTheBlock, immense resistance is expected between $0.084 and $0.086. In this range, 24,000 addresses have previously purchased 3.18 billion DOGE tokens. As bulls push for a rebound, investors in this range might seek to exit from their positions citing the volatility in the market and thereby adding weight to the bearish narrative. If the support at $0.077 breaks, investors may anticipate a reprieve at $0.065.
Dogecoin IOMAP Model
ApeCoin Faces The Last Line Of Defense
Following a well-orchestrated recovery move from support at $5 to $9.84, ApeCoin started to trim gains. Higher support was established at $7.5 and for some time, APE settled for consolidation.
However, things turned awry after the cryptocurrency market flipped bearishly. The NFT token resumed the downtrend sliding below $6.5. At the time of writing, it had taken a pit stop at $6.
Buyer congestion seemed to be absorbing most of the selling pressure; thus preventing more losses. Nevertheless, signals from the Supertrend indicator hint at a prolonged downtrend in the coming days.
APE/USD Four-Hour Chart
May’s primary support at $5 would come in handy, which may bring a double-bottom pattern into the picture. From here, the token might have the required momentum to push through barriers of $7.5 and $10.