|

Dogecoin price correction slows down as DOGE bears book profits

  • During a flash crash, Dogecoin price has taken out a few pivotal support elements.
  • DOGE downtrend keeps continuing but could see a U-turn today or tomorrow.
  • Expect investors to pick up the sharp discount in DOGE discounted price action and see a quick pop back towards $0.2630.

Dogecoin (DOGE) saw a flash crash on Saturday, as Bitcoin made a similar move and dragged most of the other cryptocurrencies with it. As bears are enjoying the downtrend, a halt and U-turn might be just around the corner as shorters have not much profit left on the table to close out their positions. Investors in DOGE price action are looking to pick up some hefty volume as the price is at an attractive discount.

Dogecoin bulls return to the scene as the discount is irresistible

Dogecoin price saw its price spiral further to the downside as the downtrend did not look to come to a halt over the weekend and only saw acceleration as Bitcoin pulled a flash crash on Saturday. With that, bulls got alarmed that bears have shot themselves in the foot by putting DOGE price action in oversold under the Relative Strength Index (RSI), further limiting any down moves. By this, bears will start to scramble to book profits, for which they need to go to the buy-side volume and start buying-in to close out their short positions.

The downtrend already looks to be slowing down as DOGE price does not look able to break below $0.16. That same level already provided support on Saturday and halted the falling knife. As bears will need to book profits, they need to buy DOGE, and as investors are looking to buy DOGE coins at this discount, expect a massive buy-side demand to come in and pump price action back up towards $0.25 by the end of this week.

DOGE/USD daily chart

DOGE/USD daily chart

If the current turmoil in cryptocurrencies keeps persisting, and Bitcoin would extend its selloff from Saturday, expect the price to test and break the area at $0.16 and look for further support down the line towards $0.1 with the monthly S2 as support and the low from mid-April. As the RSI by then will have gone further into oversold, expect any further moves to be minimal and open for a bullish reversal.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

More from Filip Lagaart
Share:

Editor's Picks

Ripple recovery runs into headwinds amid fading retail and institutional interest

Ripple (XRP) holds slightly above $1.30 on Monday, with short-term recovery prospects fading. Strong structural resistance toward $1.40 continues to cap upside, raising the risk of further downside below $1.30.

Crypto Today: Bitcoin, Ethereum, XRP extend recovery despite ETFs outflows

Bitcoin edges higher above $82,000, building strong structural support despite roughly $229 million in ETF outflows last week. Ethereum recovers above $2,400 as bulls strive to regain trend control, backed by a subtle recovery in momentum indicators.

Pi Network Price Forecast: Weak momentum and waning demand reinforce downside bias

Pi Network edges lower on Monday, risking a bearish conclusion to its short-term consolidation above the $0.0774 horizontal support. A steady decline in the notional value of active PI futures contracts and the weekly spot trading volume suggests reduced retail demand.

Zcash Price Forecast: Downside risk looms as ETF outflows and falling Open Interest weigh

Zcash (ZEC) edges higher on Monday after three consecutive weeks of bearish closes totaling roughly 30% losses. The privacy coin is losing institutional confidence with three straight weeks of outflows, while retail speculation eases as ZEC futures Open Interest declines to a 30-day low.

Bitcoin: Macroeconomic headwinds, cooling demand cap BTC gains
Bitcoin (BTC) extends losses this week, trading below $82,500 as of Friday as selling pressure continues. Weakening institutional demand supports this pullback as BTC spot Exchange-Traded Funds (ETFs) are on track to record a two-week withdrawal streak, reaching $146.19 million in net outflows through Thursday.