• Dogecoin price is on a bearish run despite gaining crucial support.
  • DOGE has formed a triple bottom pattern over the past few days.
  • A spike in selling pressure could lead meme-coin towards $0.20.

Dogecoin price is exhibiting a sharp downward movement, having dropped to $0.2164 support level. Increased selling pressure can push DOGE even lower despite the significant losses already incurred. It mainly depends on whether the triple bottom support level can hold.

Dogecoin price set to violate support

Dogecoin price dropped by 5.27% to hit the x-axis of a descending triangle where it has been contained since November 15.  This is the third time the meme-coin has tested the $0.2164 support, creating a triple bottom pattern. However, sellers appear to have the upper hand as the 20 and 50-period exponential moving averages act as resistance barriers at $0.2250 and 0.2305. 

On the 4-hour chart, Dogecoin has formed a series of red candles below the EMAs, which is indicative of a strong downtrend. The MACD and RSI are also holding at -0.002 and 35, respectively, boosting chances of a downswing continuation. 

In the event of a spike in selling pressure, Dogecoin’s price could dive to $0.2057 or $0.1963. 

Dogecoin (DOGE) 4-hour timeframe - Descending triangle pattern set to breakout

Dogecoin (DOGE) 4-hour timeframe - Descending triangle pattern set to breakout

On the other hand, Dogecoin can shrug off sellers if it manages to survive above the $0.2164 level. Staying above such crucial support can bring buyers and drive DOGE price towards the $0.2250 or $0.2367 resistance level. 

For now, it is imperative to wait for the closing of the 4-hour candle. If it concludes below $0.2164, Dogecoin can continue the downtrend.

 

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

Cardano Price Prediction: The market bottom no one wants to call

Cardano Price Prediction: The market bottom no one wants to call

Cardano price continues to make gains in the crypto market, as the smart contract has risen 70% since January 1, reaching a new uptrend high at $0.4138. Despite the skeptical market sentiment for risk assets, Cardano’s Price action remains unfazed.

More Cardano News

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand price is showing an applaudable amount of strength to start the month of February. The scalable blockchain token could rally an additional 25% if market conditions are met.

More Algorand News

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com price has been trading within a 10% range for nearly two weeks. The $0.08 barrier has consistently acted as resistance, and the mid-$0.07 has acted as support. The coiling range has yet to make a decision on which way it will resolve.

More Crypto.com News

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic (LUNC) could only book roughly a 1.4% gain on the back of the Federal Reserve meeting from late Wednesday, which triggered upswings in all risk asset classes. The biggest winner of the evening was EUR/USD, as it traded over 1% higher and broke 1.10 to the upside.

More Terra Classic News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP