|

Dogecoin price fading without the celebrity hype

  • Dogecoin price is now locked below crucial moving averages.
  • Ascending triangle has finally resolved to the downside.
  • DOGE Relative Strength Index (RSI) still not at an oversold reading on the daily chart.

Dogecoin (DOGE) price is frustrating the bullish narrative and making the grand forecast of $1 by the end of 2021 look impossible. A failure to hold the lower bound of the ascending triangle and the ensuing collapse below the flattening 50-day simple moving average (SMA) for the first time since mid-December 2020 has shifted the bias from neutral to bearish in the short-term.

Dogecoin price faces mounting technical barriers

List all of Dogecoin’s supporters, Elon Musk, Mark Cuban, Gene Simmons, Lil Yachty, and Mia Khalifa, among others, lent their voice to the DOGE  wave. The problem is that celebrity popularity only carries so much weight in the markets. As a result, since early March, the altcoin has struggled to get price traction and finally succumbed to selling pressure last week.

Price rolling over under moving averages is never a good development, and that is precisely the case on the 12-hour chart. Over the last six days, DOGE has struck resistance at the confluence of the 50 twelve-hour SMA and the 100 twelve-hour SMA at $0.056.

A break in Dogecoin price will not find credible support until the 0.618 Fibonacci retracement level, an advance from the November 2020 low to the January high at $.040, which represents a 25% decline from the current price. The next reliable support appears at the 100-day SMA at $0.036.

DOGE/USD 12-hour chart

DOGE/USD 12-hour chart

Bullish projections face resistance at $0.056 and then the ascending triangle’s upper boundary at $0.064, and the price congestion around $0.066. If bulls have the stamina, the 0.618 Fibonacci retracement of the February plunge at $0.074 is a potential target.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

More from Sheldon McIntyre, CMT
Share:

Editor's Picks

Crypto Today: Bitcoin, Ethereum, XRP trade under sustained selling pressure despite mild ETF inflows

Cryptocurrency prices remain under pressure as a risk-off mood persists on Friday, with Bitcoin consolidating its losses above $62,000. Altcoins, including Ethereum and Ripple, are extending their weakness, trading near lower support levels around $1,600 and $1.12, respectively.

Bitcoin Weekly Forecast: After the bloodbath, everyone looks at $60,000

Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit. A reactionary spike in on-chain activity and social chatter, reflecting a strength of community, but fails to absorb the price decline.

Arthur Hayes' “Holy Trinity” is dead: Exits Zcash after Orchard Pool exploit

Arthur Hayes dumped his entire Zcash holdings on Friday, a day after selling his HYPE and NEAR holdings. Zcash is down 13% so far on Friday, extending the 26% drop from the previous day.

Bitcoin: After the bloodbath, everyone looks at $60,000
Bitcoin (BTC) hovers above $62,000 at the time of writing on Friday, weighed down by growing risk-off sentiment due to persistent geopolitical tensions in the Middle East and sticky macroeconomic uncertainty. The institutional sell-off continued to wreak havoc on capital flows, with spot Bitcoin Exchange-Traded Funds (ETFs) recording billions in outflows.