Lorenzo Stroe
Independent Analyst
- Dogecoin price could fall even lower as key indicator is about to present a sell signal.
- DOGE bulls face a lot of resistance to the upside while support remains weak.
- The interest in the digital asset has been slowly fading away.
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.
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.
Recommended Content
Editors’ Picks
Bitcoin, Ethereum prices struggle after mixed US NFP data
BTC and ETH prices experienced a temporary pullback as crypto market participants reacted to the news of the US NFP data release for May. Similar to the situation in April, the number of Nonfarm Payrolls added far exceeded the market’s expectations.
Solana: A break above $26.30 would spell doom for bears
SOL price has been trading with a bullish bias after an explosive breakout on December 30. However, because of volatility and the gloom in the broader crypto market, SOL has been unable to break above a key hurdle at $26.30, causing the price to trade sideways.
Bitcoin Weekly Forecast: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.