Dogecoin price showed some weakness on Wednesday morning as traders reacted to the broader market jitters.

Why Is The Dogecoin Price Down Today?

Dogecoin (CRYPTO: DOGE) slipped by 2.0% in the past 24 hours and fell to $0.202 at press time. The drop — from $0.226 to $0.202 — occurred around midnight.

The move down in price came on increased trading volume of 1.18 billion, compared to the usual volume of around 900 million.

Dogecoin showed some strength as it bounced back from its lows of $0.201. However, the cryptocurrency was still trading in a narrow range between $0.202 and $0.206.

This consolidation pattern indicated that the market was digesting the recent price action and traders were showing some caution.

Dogecoin had fallen sharply in recent days, testing multiple support levels during the crash.

The cryptocurrency had also formed a key resistance at $0.217, which it failed to break on multiple occasions.

Some traders were looking at the possibility of a double-bottom pattern forming, which could give hope to bulls who were hoping to see a breakout towards $0.25.

For that breakout to occur, Dogecoin would need to gather enough momentum to push past the resistance at $0.217.

Open interest in Dogecoin derivatives also rose by 2.89% to $2.71 billion, showing that traders were positioning for the next big move.

However, it remained to be seen whether that move would be higher or lower, as there was mixed sentiment in the market.

What To Watch Now

As the dust settled on the cryptocurrency market, traders and investors will be looking ahead to the next few hours to see if there were any signs of a sustained rebound—or a deeper decline—in the market.

Photo: JANE M SMITH on Unsplash