- DOGE/USD’s 12H chart points to more downside in the offing.
- Bullish 50-SMA at $0.0510 is the level to beat for the bears.
- RSI points south below the midline, backing the downside bias.
Dogecoin (DOGE/USD) is looking to extend Friday’s sell-off, as the bears fight back control following Thursday’s temporary reversal.
The meme-based digital currency, Dogecoin, has danced to the tune of the SpaceX CEO Elon Musk’s tweets so far this month but overall, the trend has been to the downside as the frenzy around the No. 13 subsides.
Commenting on Musk’s love for the Shiba Inu-themed cryptocurrency Friday, Binance Holdings Ltd. Chief Executive and Founder, Changpeng Zhao, said: “I’m surprised Elon is so gung-ho on Dogecoin -- but this is a decentralized, free world, anybody can like anything.”
Binance, the operator of one of the world’s largest crypto exchanges, has recently added Dogecoin futures on its platform to satisfy new liquidity demand.
DOGE/USD: Prepping up or for a big move to the downside?
DOGE/USD: 12-hour chart
DOGE/USD is traversing within a falling channel after hitting record highs at $0.0881 on February 7.
As observed on the 12-hour chart, the price trying hard to defend the critical upward-sloping 50-simple moving average (SMA) support at $0.0510.
Should the aforesaid fierce support succumb to bearish pressures, the Dogecoin could witness a sharp sell-off to the falling channel support, now aligned at $0.0389.
The relative strength index (RSI) points lower, currently at 46.80, suggesting that there remains more room to the downside.
If the 50-SMA support holds, the DOGE bulls could look to challenge a powerful barrier around $0.0615, where the falling channel resistance and bearish 21-SMA coincides.
Acceptance above the latter would yield a technical breakout, negating the recent corrective decline while opening doors once again towards the all-time-highs.
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.