• 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.  

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.

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