Dogecoin Price Forecast: DOGE is on the brink of correction to $0.06


  • Dogecoin is holding at the 50 SMA, but if this support is shattered, losses may extend to $0.06.
  • The short-term technical picture adds credence to the bearish outlook.
  • Recovery above the ascending channel’s middle boundary could sustain the uptrend to $0.1.

Dogecoin has managed to hold onto most of the gains accrued throughout the week. However, it is essential to mention that a correction occurred from the new record high of $0.089 to price levels slightly above $0.06. At the time of writing, DOGE is dancing at $0.068 amid the push by buyers to avert potential losses.

Dogecoin breakdown looms if two crucial levels are broken

The 50 Simple Moving Average on the 4-hour chart is the immediate support. Trading below this area will put the ascending parallel channel’s support in jeopardy. Note that massive sell orders will come into the picture if Dogecoin starts exploring levels beneath the channel.

According to the Moving Average Convergence Divergence (MACD), the least resistance path is downwards. This follows a recent MACD line (blue) cross below the signal line. Besides, the bearish outlook will become apparent in the event the MACD slides into the negative region.

DOGE/USD 4-hour chart

DOGE/USD 4-hour chart

The IOMAP model by IntoTheBlock brings to light the numerous seller congestion zones ahead of Dogecoin. The region between $0.073 and $0.074 is the most robust resistance zone. It hosts nearly 59,000 addresses that had previously bought roughly 5.4 billion DOGE. It will be an uphill task to rise above this area; hence, the pessimistic outlook is strengthened.

On the flip side, medium-strong support has been established between $0.066 and $0.068. If the bearish technical outlook remains intact, Dogecoin could slice through this area and force the bulls to seek refuge at a lower zone. This robust support runs from $0.058 to $0.06. Here, roughly 37,000 addresses had previously bought around $5.4 billion DOGE.

Dogecoin IOMAP chart

Dogecoin IOMAP chart

Looking at the other side of the picture

Dogecoin will resume the uptrend if the immediate support at the 50 SMA remains intact. If push comes to shove, the lower edge of the channel can stop the losses. However, action beyond the middle boundary will call for more buyer orders as investors rush to take a piece of the cake as they wait for gains above $0.1.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Dogecoin Price Forecast: DOGE base targets at least 30% upside

Dogecoin price declined almost 50% from the April 16 high to the April 17 low, reminding speculators that DOGE did have two sides. Since the price low, the altcoin rallied close to the all-time high at $0.4532 by April 19. 

More Dogecoin News

Zilliqa Price Forecast: ZIL on the verge of a brutal fall

Zilliqa has lost 30% of its market capitalization in the past three days. The digital asset must hold a critical support level to avoid further downside action. 

More Zilliqa News

Binance Coin price ready for new all-time highs, according to technicals

Binance Coin price had a 20% dive in the last 48 hours amid overall market weakness. However, the Ethereum rival has managed to recover faster than other coins and aims for new all-time highs.

More Binance Coin News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: XRP price takes point in recovering weekend crash losses

The entire cryptocurrency market tumbled this weekend due to rumors from unfounded sources circulating on Twitter. At the time of writing, most altcoins, especially DeFi coins, seem to be recovering quickly while Bitcoin and Ethereum, not so much.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs

Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.

Read the weekly forecast

BTC

ETH

XRP