Dogecoin Price Forecast: DOGE under a lot of selling pressure as Elon Musk will be investigated by the SEC

Dogecoin price suffered a major 52% correction from its all-time high of $0.0875. On February 25, the SEC announced that it will open investigations into Tesla’s Chief Executive Elon Musk because of his tweets about DogeCoin. Musk has said in the past that he does not respect the Securities Exchange Commission. 

Dogecoin price on the verge of a collapse

On the weekly chart, the TD Sequential indicator has presented a green ‘8’ candlestick which is usually transformed into a sell signal. The last signal presented on December 2020 had a ton of bearish continuation driving Dogecoin price down by 55%. 

DOGE/USD weekly chart

The confirmation of the upcoming sell signal could push Dogecoin price towards $0.044 again, at the 50% Fibonacci Retracement level. Below this point, DOGE has more support at $0.034 which is the 38.2% level, and eventually at $0.022 the 23.6% level.

DOGE/USD daily chart

On the daily chart, Dogecoin price has formed a symmetrical triangle pattern. A breakdown below the critical support level at $0.049 will push Dogecoin price towards a low of $0.016 in the long-term.

However, to invalidate the potential bearish outlook, DOGE bulls need to crack the resistance barrier established at $0.057. A breakout above this point should send Dogecoin price to new all-time highs at $0.093.