Dogecoin Price Forecast: Why investors should zoom out and consider the monthly narrative


  • Dogecoin price is down 32% on the month.
  • DOGE is testing the 50-month moving average as support.
  • A monthly close below $0.072 could set up a 50% decline for Dogecoin in the coming months.

Dogecoin price continues to display bearish technicals. Traders may want to zoom out to larger timeframes and consider DOGE’s bearish macro potential.

Dogecoin price points south

Dogecoin price is wreaking havoc on the risk-taking bulls who entered the market this year. As of December 21, the notorious meme coin is down 32%, bringing the lost market value to a 90% decline since all-time highs. Still, despite the whopping price decline, DOGE bears may just be getting started. 

Dogecoin price currently auctions at $0.073. Congestion forms on smaller time frames above the 50-month moving average (MMA). A close below the indicator would be a tremendous display of strength from bears in the market. Auction Market Theory, which uses Pareto’s 80-20 rule, would suggest DOGE have an 80% chance of tagging the 100-month moving average if the 50-MMA fails to provide support.

The 100-month moving average is currently positioned at $0.037 and has yet to be retraced following Dogecoin’s infamous 10x bull run in 2021. DOGE would decline by 48% if the bears were successful.

tm./doge.12/21.22

DOGE/USDT 1-Month Chart

Still, there are ten days left in December, and Crypto investors know that a lot can change heading into the end of the month. Invalidation of the bearish thesis will require the monthly closing candle stick to settle above the 50-MMA, ideally with a bullish hammer or Doji candlestick. 

DOGE will likely need to recoup between 50%-80% of lost market value on the month to establish the bullish requirements. In doing so, Dogecoin could remain range bound and potentially tag the midpoint of the current trading range at $0.09, resulting in a 35% increase from the current market value.



 


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

Recommended content


Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP