Dogecoin (DOGE) experienced a five-day winning streak before it was snapped on Wednesday as the meme coin plunged by as much as 6% in today’s session, wiping out recent gains. DOGE/USD surged to a peak of $0.0950 during yesterday’s session, but fell to a low of $0.0851 earlier in the day. The drop seems to be a result of a breakout on the relative strength index (RSI), which fell below a floor at 60.00. DOGE has since rebounded and is currently at $0.08815, but could move below $0.0850 should the RSI continue to fall.
Solana (SOL) was also lower on Wednesday, plunging by 9% as SOL/USD dropped to a bottom at $22.27 earlier in the day. This comes following Tuesday’s peak at $25.22. Like with Dogecoin, the drop seems to have coincided with a breakout on the RSI indicator, which moved below 57.00. If this downturn continues for the remainder of the week, there is a strong possibility that SOL will move below $20.00.
The crypto market’s sentiment has shifted, causing the drop in Dogecoin and Solana. It is unclear whether today’s downturn is simply a matter of profit capturing, but investors are advised to keep an eye on the RSI indicator, which could continue to affect the values of DOGE and SOL. Registering an email address is a good way to get weekly price analysis updates sent to your inbox.
Eliman Dambell, a former director of a London-based brokerage and an online trading educator, currently comments on various asset classes, including crypto, stocks, and FX, while also being a startup founder. He has noted that the recent drop in DOGE and SOL could be a result of the RSI indicator, which is fast approaching a lower point of support at 51.00 for SOL. Investors should be cautious and make informed decisions based on market trends and indicators.
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