• Dogecoin price drifts upwards within an ascending parallel channel,  but no hint of a resumption of the rally.
  • May 19 low of $0.195 combines with the 200-day simple moving average (SMA) to transmit support.
  • DOGE fails to tally the significant gains captured by other coins, as a nine-day gain only strikes 20%.

Dogecoin price has stumbled after the energetic charge of 11% on July 21, registering just a 7% gain over the last nine days. Many of the days have concluded with doji candlestick patterns, signifying a balance between buyers and sellers and overall uncertainty within the ranks of DOGE investors. Until the altcoin can register a daily close above the declining 50-day SMA, it is better to let Dogecoin price sway in the boundaries of the ascending parallel channel pattern.

Dogecoin price not getting a quality jump from the pump

A recent FXStreet article on July 26 pointed out that the social media ravings of Elon Musk about DOGE have failed to ignite a powerful and sustainable rally in Dogecoin price. It is unfamiliar territory for the meme token and diehard DOGE investors. Earlier this year, the rantings of Musk and other high-profile personalities would drive the cryptocurrency notably higher and secure the lead story on the news roll. 

Without the prospect of social media-driven FOMO, it is profitable to consider the price structure being plotted by Dogecoin price. The rise from the July 20 low, excluding July 21, has taken on a corrective personality, suggesting it is a pause in the larger correction that began at the beginning of May.

To turn the probabilities in favor of an extended rally, Dogecoin price needs to close above the 50-day SMA at $0.233. If successful, DOGE may be motivated to test the June 25 high of $0.291, logging a 25% gain. The declining 50-day SMA will partially restrict a continuation of the rally as it pulls down on price.

DOGE/USD daily chart

DOGE/USD daily chart

Fortunately for Dogecoin price, three support levels are present that may arrest any selling pressure before it gets started. One level is the lower line of the ascending parallel channel tested today, followed by the May 19 low of $0.195, tested today, and finally the 200-day SMA at $0.191.

Even a daily close below the 200-day SMA does not guarantee a rapid descent as the July 20 low of $0.159 and the June 22 low of $0.152 create formidable support for Dogecoin price. A decline from the 200-day SMA to the June 22 low would yield a 20% loss. Interestingly, the June 22 low aligns with the May descending trend line, reinforcing the support value.

With many of the altcoins and Bitcoin at or near considerable resistance, the probability of short-term weakness in the cryptocurrency complex is tilted higher, leaving Dogecoin price with no tailwind to help press DOGE through the trigger price.

If this is a new chapter in the DOGE story, it is not interesting for market operators. In reality, Dogecoin price is learning the harsh realities of an environment that ignores the social media antics of the famous and cannot engineer the FOMO that underpinned the dramatic advance earlier in the year. As long as the 200-day SMA holds, the altcoin will likely continue the quest for a buying stampede.

Here, FXStreet's analysts evaluate where DOGE could be heading next as it looks ready to jump.


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

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Fresh lows for crypto markets in sight as recovery gains come undone

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Fresh lows for crypto markets in sight as recovery gains come undone

Bitcoin price faced an intense sell-off as it approached the recent weekly open, indicating that investors are looking to book profits. This downswing has caused Ethereum, Ripple and other altcoins to take a dip as well.

More Bitcoin News

This technical formation could push TRON’s TRX price to $0.016

This technical formation could push TRON’s TRX price to $0.016

TRON price shows that its coil up is coming to an end, suggesting that a breakout is on its way. However, investors need to know that rejection at immediate resistance barriers could trigger a correction and an eventual breakdown.

More Tron News

Why this move from Shiba Inu price could catch investors off guard?

Why this move from Shiba Inu price could catch investors off guard?

Shiba Inu price prepares for a quick retracement after nearly a week of recovery bounce. While this run-up was impressive, things are likely going to go slow for SHIB as investors continue to book profits.

More Shiba Inu News

Three obstacles that may prevent XRP price from surging

Three obstacles that may prevent XRP price from surging

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

More Ripple News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis