• 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 price

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 price

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. 

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.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis