• Dogecoin price faces significant selling pressure in the short-term.
  • A key indicator has presented a strong sell signal on the 12-hour chart. 
  • DOGE bulls must defend a key support level to avoid a significant fall.

Dogecoin has been trading in a short-term downtrend, despite Mark Cuban's positive comments in the past two days. The digital asset is at risk of a significant drop if it can't stay above a critical support level.

Dogecoin price at risk of a significant correction

On the 12-hour chart, the TD Sequential indicator has just presented a sell signal. If Dogecoin price can't hold the $0.054 support level at the 61.8% Fibonacci level, DOGE will likely fall towards $0.052 and as low as $0.049 at the 38.2% Fib level.

doge price

DOGE/USD 12-hour chart

The In/Out of the Money Around Price (IOMAP) model shows that the area between $0.053 and $0.054 is the most significant support range. A breakdown below this point will push Dogecoin price down to $0.049, the same price target given by the Fibonacci Retracement indicator, adding credence to this theory.

 doge price

DOGE IOMAP chart

To invalidate the sell signal, Dogecoin must climb above the last high of $0.0587 and see a 12-hour candlestick close there. The next resistance point is located at $0.063. 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Three reasons why Aptos price rally could lose steam after 400% gains

Three reasons why Aptos price rally could lose steam after 400% gains

Aptos witnessed a massive spike in its price since December 29, but on-chain analysts and experts suspect the token’s price rally could soon come to an end

More Cryptocurrencies News

Three reasons why Bitcoin price analysis hints at a pullback to this level

Three reasons why Bitcoin price analysis hints at a pullback to this level

Bitcoin price has been on a steady uptrend since January 1 and has shown no signs of stopping so far. However, things are starting to change with January 29’s daily candlestick close and could point to an incoming sell-off.

More Bitcoin News

Solana price might be in a micro uptrend, but here's why traders should practice caution

Solana price might be in a micro uptrend, but here's why traders should practice caution

Solana price is maintaining its presence above the $22 mark that it reclaimed about a week ago, enabling the altcoin to preserve its uptrend.

More Solana News

Cardano Price Prediction: ADA still in an uptrend until this level fails

Cardano Price Prediction: ADA still in an uptrend until this level fails

Cardano price accomplished an impressive 66% rally in January. As the price continues to ascend, there are reasons to consider that a pullback is on the horizon. 

More Cardano News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP