- Dogecoin price fails to move past the $0.272 resistance level.
- A rejection could trigger a 20% descent to $0.193.
- However, a decisive close above $0.274 will invalidate the bearish thesis.
Dogecoin price shows a lack of momentum despite its competitor, Shiba Inu, rising over 200% in roughly a week. Moreover, the overall bearish structure of the market also indicates that DOGE could be due for a correction.
Dogecoin price falls short of enthusiasm
Dogecoin price has been on a slow and steady trend up as it rose roughly 40% over the past week. However, this uptick in price faced a massive resistance around the 50% Fibonacci retracement level at $0.272. Due to weak buying pressure, DOGE has retraced roughly 9% so far but shows signs that it will head lower.
However, the support area ranging from $0.213 to $0.23 will be crucial in deciding the short-term directional bias for the meme coin. A breakdown of the $0.213 demand level will indicate increased selling pressure and confirm the start of a 20% downtrend to $0.193.
This bearish outlook is partly driven by the structure of the big crypto, which looks weak and the recent surge in popularity of DOGE competitor Shiba Inu, which has rallied roughly 230% over the past week. This sudden uptick in SHIB might have caused users to migrate over to the DOGE-killer.
Therefore, investors need to be careful of an impending corrective wave.
DOGE/USDT 1-day chart
On the other hand, if the Dogecoin price fails to slice through the support area extending from $0.213 to $0.23, it will denote a strength among buyers. A decisive close above $0.272, coinciding with the 50% Fibonacci retracement level, will invalidate the bullish thesis.
In this situation, investors can expect DOGE to continue its ascent to retest the 70.5% Fibonacci retracement level at $0.305.
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.
Recommended Content
Editors’ Picks
Uniswap nears $3 billion in daily trading volume despite Wells notice and fee hike
Uniswap's (UNI) price witnessed a double-fold crash in the past week after it received a Wells notice from the SEC and later due to the general crypto market crash over the weekend. In the past week, UNI has decreased more than 38%.
Arbitrum Price Prediction: 10% losses likely for holders ahead of $107 million worth of cliff token unlocks
Token unlocks are considered bearish catalysts, particularly when recipients are likely to cash in for a quick profit. The event, which adds tokens to the project’s circulating supply without increasing demand, leaves an effective imbalance in favor of supply.
Ethereum recovers from dip as Hong Kong ETH ETF approval sparks whale buying spree
Ethereum's (ETH) price slightly improved on Monday after Hong Kong approved applications for a spot Bitcoin and Ethereum ETF. Whales have also been accumulating ETH after the market dip over the weekend.
Bitcoin price delays pre-halving rally as US and China battle for BTC supremacy ahead of halving
Bitcoin has failed to showcase an enticing pre-halving rally. As the event remains less than a week out, traders and investors remain at the edge of their seats, with thoughts on whether the impact of the fourth cycle will be different than what has been seen before.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.