|

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:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.