Share:
  • 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. 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.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.

More Shiba News

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.

More Lido DAO News

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27.  RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.

More Rune News

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.

More Chainlink News

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.

Read full analysis

BTC

ETH

XRP