• Dogecoin price fails at symmetrical triangle support, begins new phase in the bottoming process.
  • DOGE volume contraction over the last nine days shows no emotion or commitment for the meme-cryptocurrency. 
  • A decisive close above the descending channel’s upper trend line could establish a new bullish narrative

Dogecoin price over the previous nine trading days fluctuated around the 50-day simple moving average (SMA), complicating a definitive outlook for DOGE. During that period, the digital asset formed a symmetrical triangle pattern that resolved to the downside yesterday, confirming a bearish turn.

Dogecoin price struggles to renew base of popularity

Dogecoin price declined about 75% from the May 8 high at $0.760 to the May 19 low at $0.195, putting it on the higher side of the range for declines in the cryptocurrency complex. However, the digital token did achieve a 130% bounce off the May 19 low into the May 20 high, closing DOGE back above the 50-day SMA, a level that has been instructive for the price action over the last nine days.

The decline below the triangle’s lower trend line yesterday has positioned Dogecoin price to test the descending channel’s lower boundary at $0.177. The projected DOGE decline will discover support at the confluence of the May 23 low at $0.246, with the channel’s midline at $0.242. Further support emerges at the May 19 low at $0.195.

A flash style of crash, similar to May 19, could expose Dogecoin price to a test of the 61.8% Fibonacci extension at $0.147 of the DOGE rally beginning April 1, representing a 50% decline. 

Additional selling will strike the strategically important 200-day SMA at $0.112 and potentially the January 29 high at $0.100. It would be the first test of the moving average since December 2021.

DOGE/USD daily chart

DOGE/USD daily chart

To entertain a positive outlook, Dogecoin price needs a daily close above the channel’s upper boundary at $0.335 and the 50-day SMA at $0.362. No further imposing resistance exists until the 50% retracement of the May correction at $0.477 and then the 61.8% retracement at $0.544.

MaybeIf Stanley Druckenmiller is correct, and the DOGE story is a “manifestation of the craziest monetary policy in history.” Or maybe, it is a social media story orchestrated by Elon Musk and Mark Cuban and inspired by the community lead Gamestop events that consumed the stock market in early 2021. Whatever the reason or reasons, the current Dogecoin price chart has been an enigma wrapped in a riddle.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Weekly Forecast: Musk changes tune on BTC as adoption and miners continue to make headway

Bitcoin price revival appears to be going well considering the recent sweep of the July 15 swing high. While this uptick in the market value of BTC is bullish, there is bound to be a minor pullback that will help catapult the pioneer cryptocurrency higher.

More Bitcoin News

TRON price sits on strong support while TRX bulls plan 70% breakout

A brief technical and on-chain analysis on TRON price. Here, FXStreet's analysts evaluate where TRX could be heading next as it seems bound for higher highs.

More Tron News

Cardano might pull back to $1.11 before heading higher

Cardano price has seen a quick run-up after approaching the trading range’s lower limit. While this uptick in ADA’s market value was obvious, investors should be aware of a minor pullback before the so-called “Ethereum killer” embarks on another leg up.

More Cardano News

Dash price must overcome imposing resistance to breakout

A brief technical and on-chain analysis on Dash price. Here, FXStreet's analysts evaluate where DASH could be heading next as it consolidates.

More Dash News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP