Dogecoin gains back a small portion of its value during market rebound
Dogecoin followed the general trend in the cryptocurrency market and rebounded more than 20% in the past 24 hours, recouping much of yesterday’s losses, according to TradingView.
As the chart suggests, Dogecoin faced a rapid recovery yesterday evening, gaining back a major portion of yesterday’s losses. Due to a swift recovery, the daily candle of DOGE formed a long “shadow.”
The asset becomes oversold in the short term
The main and most likely reason for the rebound is the fact that such selling pressure hit the market after traders were hit by the global panic. According to volume profiles, Doge faced the largest inflows since January 2022, all of which were aimed at driving down the price of the asset.
According to the Relative Strength Index, the asset became oversold during the day on Feb. 24, but thanks to the bounce the next day, the RSI’s values returned back to normal.
As for other technical indicators, Dogecoin managed to break above short-term moving averages which could signal the potential start of the asset’s short-term rally should decent buying power emerge.
While the short-term time frame could hint at a rebound, the one-day and one-week timeframe still looks depressing and shows nothing but a strong downtrend present on the first meme-currency since May 2021.
