Dogecoin set to lose another 25% of market value
|- Dogecoin is set to dip after bulls made a massive recovery but could be at risk from a bull trap.
- DOGE price action could fall back to test $0.10 depending on developments in Ukraine over the weekend.
- The altcoin could see its value plunge another 25% should the situation deteriorate further.
Dogecoin (DOGE) price action saw a remarkable, bullish recovery yesterday as buyers jumped on an entry opportunity at the monthly S1, just above $0.10, and pulled a complete paring back of recent losses. With that move, that only got triggered late into the US session, bulls will want to wait and see how the market unfolds and, in the process, book some profit. Depending on further developments, expect to see more profit-taking and see price fall back to $0.10 or even $0.095. In such a scenario, Dogecoin is set to lose 25% of market value just before heading into a nervous weekend.
Dogecoin bulls made an effort but it could be short-lived as the situation in Ukraine looks dire
Dogecoin price action had a downturn coming, even without the Ukrainian events that shocked the world yesterday. On Wednesday, bullish Dogecoin price action got rejected firmly at $0.13. The further downturn on Thursday only got magnified with the turn of events in Ukraine.
DOGE price action is set to lose some more room as bulls will not want to go into the weekend with a large holding of Dogecoin coins on their books. Expect to see more profit-taking throughout the day and for price action to slowly but surely dip lower. As the closing hours of the US trading session approach, expect to see an accelerated move towards $0.10 and the monthly S1 support, as well as the historical $0.094 and the red descending trend line all coming in in support of price action.
DOGE/USD daily chart
Taking a more positive view, if signals arise in early noon of possible talks underway between Russia and Ukraine, expect to see a relief rally back up to $0.13. Should bulls pierce the area and pop above it, expect to see some more upside towards $0.16. Nevertheless, traders should keep in mind that the 55-day Simple Moving Average is in the way and has been a cap on price action in the recent past. A daily close above the 55-day SMA would deliver a very bullish signal to markets and could see the start of an uptrend going into next week.
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