The spike which occurred in Dogecoin in early September is quickly reversing itself as Doge records its fifth consecutive loss. This is a bad sign for holders in Doge as the price continues to depreciate despite the rest of the market trading steadily sideways.
The momentum is strongly on the side of sellers with the MACD diverging to the downside and the RSI forming lower lows and lower highs. The RSI has entered oversold territory, but with momentum being strongly bearish, it is unlikely that this will have any impact.
Price was briefly held by the daily 200 EMA, but on a second test, price action broke through and now trades significantly below. Any movement back up would likely meet resistance at this point.
While most of the market tends to follow the market leader Bitcoin, Doge is on a path of its right now as analysis looks like its sure for further declines. It is questionable whether this decline will result in price returning to support near $0.002 where it traded before the early September spike.
The hourly chart shows the steady decline with recent downward movements occurring on significant volume as the momentum of the downward move increases. The majority of sellers are likely to be looking to profit from the September spike as they lose hopes of further increases. Other traders may also be short selling on some exchanges such as Poloniex which offer this service. This involves borrowing funds from other traders on the exchange to speculate on Dogecoin declining versus Bitcoin. The current price is around $0.0037 and against USD and 58 Satoshi against Bitcoin (0.00000058 Bitcoin).