• Dogecoin price strikes the 200-day simple moving average (SMA) for the first time since December 2020.
  • Daily Relative Strength Index (RSI) marks the most oversold reading since March 2020.
  • DOGE closed yesterday with the largest daily decline since January 30.

Dogecoin price finally broke free of a complex, rounding consolidation on June 18, providing the catalyst for DOGE to fall 50% over five days at today’s low. The ongoing, successful rebound from the 200-day SMA is a constructive development, but it struggles to reclaim the May 19 low of $0.195 on an intra-day basis. Unless the meme token can close above the May low, investors should remain on the sidelines.

Dogecoin price gambles with support, searching for a conclusive end to the selling

Dogecoin price suggested many potential patterns since the May 19 crash, but none resolved until June 18 when DOGE released from the complex, rounding consolidation. The multiple days of price contraction launched a significant price expansion, smashing the May 19 low at $0.195 and pushing the altcoin down to the strategically important 200-day SMA at $0.150. It represented a 50% decline from the pattern resolution and an 80% plunge from the all-time high of $0.760.

A daily close above $0.195 may permit Dogecoin price to commence a meaningful rebound to the intersection of the 23.6% Fibonacci retracement of the May-June collapse at $0.297 with the rounding consolidation support level, offering a 50% gain for active DOGE market operators. The May 23 low of $0.246 may offer temporary resistance during the bounce.

More significant DOGE returns will be a challenge, but if Dogecoin price can unlock from the $0.297 price level, it will not find formidable resistance until the confluence of the 38.2% retracement at $0.389 with the 50-day SMA at $0.390.

DOGE/USD daily chart

DOGE/USD daily chart

At the time of writing, Dogecoin price has only achieved a mild bounce from the 200-day SMA, but the real test will be a close above $0.195. Until DOGE can achieve that short-term milestone, it is imperative to consider the remaining downside potential for this leg lower.

A daily close below the 200-day SMA leaves Dogecoin price vulnerable for a quick test of the 123.6% extension of the May-June bounce at $0.131. Further selling could leave DOGE at the 138.2% extension at $0.092, yielding a decline of almost 50% from the current price.

DOGE has been at the center of tremendous hype, thanks to social media and Reddit influencers. However, the most committed investors probably don’t realize that Dogecoin price has fallen 80% from the May high. A humbling outcome for an altcoin that was on the cusp of reaching $1.00 only two months ago.         

Still, the collapse below the May 19 low and potential recovery today may be the ultimate bear trap, clearing the remaining catastrophic voices stalking DOGE.

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

SafeMoon price looks to skyrocket 30% as technicals flash buy signal

A brief technical and on-chain analysis on SafeMoon price. Here, FXStreet's analysts evaluate where SAFEMOON could be heading next.

More Bitcoin news

Uniswap price eyes 20% gains as UNI technicals scream ‘buy'

Uniswap price faced a blockade at $21.51, slowing its recovery. The RSI reveals a bullish divergence in play, hinting at a 20% climb. A breakdown below $18.37 will invalidate the bullish thesis.

More Litecoin news

Litecoin contemplates 17% ascent after reclaiming crucial barrier

Litecoin price experienced the second flash crash, which bottomed on September 21. While the descent was steep, the recovery seems to be coming along well. The recent upswing has pushed past a key resistance level, but LTC needs to hold above it to confirm buyers’ presence.

More Litecoin News

XRP price flips massive support floor into formidable resistance

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple behaves as it trades below key resistance.

More Ripple news

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP