• Dogecoin price responds to the oversold market with indecision and uncertainty, not characteristics of a significant low.
  • DOGE fails at the 50-day simple moving average (SMA) with a sizeable reversal but confirms the double bottom.
  • The 200-day SMA is the new line of defense as the digital token moves in an ascending parallel channel.

Dogecoin price rebound remains unvalidated as the cryptocurrency fails to register one close above the midline of an ascending parallel channel since the July 21 breakout. Without greater conviction, DOGE is not positioned for notably higher prices, and maybe the eight-day rebound is just a resting place before the correction resumes.

Dogecoin price behaves like a memecoin, not money

Over the last seven trading days, Dogecoin price has closed with four doji candlesticks, including today’s candlestick. The other three came very close. The lack of price traction embodied by the doji candlesticks is a clear reflection of indecision and uncertainty among the DOGE investor ranks. It may suggest the last eight days are simply a pause in the larger correction beginning in May.   

A second concerning development is the inability of Dogecoin price to manufacture one daily close above the midline of the new ascending parallel channel. Once again, emphasizing the underlying reluctance that is accompanying any intra-day strength for DOGE.

If investors did not target the breakout on July 21 as an entry price, it is challenging now to isolate a timely entry price as the rapidly descending 50-day SMA at $0.238 presses down on price. To adjust for the lack of conviction, DOGE investors should wait for a daily Dogecoin price close above the 50-day SMA before allocating capital.

DOGE/USD daily chart

DOGE/USD daily chart

Interestingly, Dogecoin price is granted three support levels that could contain weakness moving forward, and they closely align. The May 19 low of $0.195 has been instructive for DOGE recently, on the up and downside. A second layer of support is the lower line of the ascending parallel channel at $0.193. The final level is the strategically important 200-day SMA at $0.189 

A failure to hold the 200-day SMA on a daily closing basis introduces the potential to break below the July 20 low of $0.159 and the June 22 low of $0.152 

The presence of numerous doji candlestick patterns on the daily chart is not impressive, but it does not guarantee that the digital asset will flip to the downside. Nevertheless, it confirms a balance between supply and demand that is consistent with indecision and uncertainty.

In general, an uncertain investor base tends to rush for the exits at any sign of trouble. As a result, a Dogecoin price close below the 200-day SMA will invite a new wave of selling pressure, not the kind that is characteristic of real money.

Here, FXStreet's analysts evaluate where DOGE could be heading next as it looks ready to jump.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Cryptocurrency exchanges are on board Terra’s LUNA hard fork and Do Kwon’s plan for the Terraform Labs token’s rebirth. Do Kwon has garnered support from leading cryptocurrency exchanges for the new Terra chain. 

More Terra News

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Ethereum dipped below the $1,900 support level over the past few hours. A decisive close below such a vital demand zone will put ETH at risk of a 38% correction toward $1,200. 

More Ethereum News

A big price move is coming for Binance Coin; here’s what to look out for

A big price move is coming for Binance Coin; here’s what to look out for

A brief technical and on-chain analysis on Binance Coin price. Here, FXStreet's analysts evaluate where BNB could be heading next. 

More Binance Coin News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Bitcoin price, Ethereum and other cryptocurrencies are stabilising after the cryptocurrency space got slaughtered last week and two weeks ago.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis