- Dogecoin price is on a five-day losing streak with no new highs since.
- The meme coin is getting squeezed to the downside.
- As DOGE enters correction territory, time for buyers to look for longs.
Dogecoin price has not had the best series of numbers in the past few days. With the push to the downside and monthly pivots each time broken to the downside, it is fishing in the bottom for some support.
Dogecoin price is deep-sea diving, but a bottom lures buyers
With Dogecoin price in a downward spiral, it is often hard to look for entry points in the opposite direction. But some buying power is about to reenergize DOGE.
There is the $0.18-level next to the 200-day Simple Moving Average (SMA). Both have been acting as significant support since June. This barrier worked as a psychological support level and was used as a set point for a rally that gave Dogecoin price 62% upside afterward.
DOGE price also has the low from June 21 that bounced off S3 of the monthly pivots and is the beginning of a Fibonacci level at $0.153.
Looking back at these three levels, the range between $0.18 and $0.153 seems perfect as an entry for a fade. Instead of going in for one long position, buy orders could be spread throughout this "accumulation area," serving as a rebound point for DOGE.
Short sellers are clearly in control since Dogecoin hit the 78.6% Fibonacci level at $0.2827, and price action now looks to complete the return to the 100% Fibonacci level at $0.1526. But on the way, there are, as described above, three excellent opportunities for a fade-in to go long DOGE.
Should current negative sentiment in cryptocurrencies persist, expect a further tick down toward $0.1357, which was the low of April 23. Just below there, we have the S3 support pivot at $0.1320, which will provide a double bottom.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.