• Dogecoin price being pressured by two declining moving averages.
  • Daily Relative Strength Index (RSI) showing temporary equilibrium between buyers and sellers.
  • Traders should not lose sight of the deteriorating technical backdrop.

Dogecoin price is failing to capture any buying interest after the 7% spike on March 26. Instead, the altcoin has drifted sideways below two declining moving averages, the 20-day SMA and the 50-day SMA. For now, a conservative mindset is appropriate in this trading environment.

Dogecoin price ignoring improved sentiment in the cryptocurrency market

The decline below the ascending triangle on March 22 was a decisive technical event for DOGE and revealed to traders that media hype could only sustain a trend for so long. Such tranquil price action is not always a precursor to explosive gains.

With the bias tilted to the downside, no credible support emerges for DOGE until the 0.618 Fibonacci retracement at $0.043, followed closely by the February low at $0.040. The next reliable support does not appear until the 100-day SMA at $0.037, which represents a 30% loss to traders from the current price.

DOGE/USD daily chart

DOGE/USD daily chart

A daily close above the 20-day SMA and 50-day SMA would flip DOGE’s bearish outlook to neutral and raise the odds of a rally in the coming weeks to the price range between $0.063 and $0.068. If bulls have the stamina, the 0.618 Fibonacci retracement of the February plunge at $0.074 is a potential target.  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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