Dogecoin price hits curb at a technical level and sees more bears joining the descent


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  • Dogecoin price action is slipping further away as global market sentiment deteriorates.
  • Expect DOGE bulls to get pushed against $0.12, set for a possible sharp nosedive.
  • Price action is likely to consolidate further into next week for a possible breakout.

Dogecoin (DOGE) price action does not have any support from markets as investors lick their wounds on the turmoil with Ukraine and the current volatility this past trading week. As DOGE bulls are not seeing any fresh inflow of interest, it looks more and more plausible that price action will first need to dip back towards $0.12 before investors are interested in picking it up at a discount. With that, DOGE price action stands to lose another 15% of its value by next week, depending on the outcome over the weekend in Ukraine.

DOGE shorters set to book another 15% profit in their downtrend as geopolitics favour bears

Dogecoin bulls attempted to run price action back up after they weakened bears a bit with the wick of the candle piercing through the 55-day Simple Moving Average (SMA) last week. Technically, the Dogecoin price action is still under siege of a death cross, and the 55-day SMA is a price cap on the top side of the price action. But the assumption that it had lost some importance proved wrong as this week, and bulls were not even able to test it before bears came in and completely overturned bulls in their effort.

Depending on the sentiment over the weekend and possible headlines on geopolitics, it looks to be that DOGE is set to shed another 15% of its value and dip back to $0.12. Only at these levels, probably investors will want to reengage as Dogecoin will offer a nice discount again at these low levels for 2022. From there, another bounce is possible, but expect that 55-day SMA to be trading even lower, further squeezing bulls and set for a break to $0.10, making new lows for 2022.

DOGE/USD weekly chart

DOGE/USD weekly chart

Front and center in these markets currently is the tension at the Ukraine border with Russia. Depending on any headlines or positive outcome of talks, expect to see a 180 degrees shift in sentiment in Dogecoin, which will see bulls hammering another hole in the 55-day SMA before reaching the monthly pivot at $0.16. Depending on the importance of the headline or outcome, expect a further continuation in a relief rally that could top the high of February and reach $0.18, making roughly 30% gains in a weekend.

 

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