• Dogecoin price action is caught in a descending trend channel.
  • Supportive moving averages have turned into resistance.
  • A retest of the September 7 low is the profit target for bears in DOGE.

Dogecoin (DOGE) price action has been respecting a descending trend channel for nine consecutive days now. Sellers are looking to book profit around $0.20, which falls in line with the low from September 7.

Dogecoin price is trending lower and can lose 16% of its value

Dogecoin price has been moving in the downward trend channel since September 7. In the beginning of the DOGE trend formation, price action could still have flipped to the upside with the help of the 55-day and the 200-day Simple Moving Averages (SMA). In the meantime, price action has been trending lower, and both the 200-day and the 55-day SMA have turned into resistance now. DOGE bears now have two very supportive elements in their corner to push prices lower. 

Buyers in Dogecoin are, however, trying to ramp the price up, with multiple tests of the upper trend line of the descending trend channel. Sellers are standing firm and defending their short view with great success. As the interest for DOGE bulls starts to fade, expect sellers to take over price action further and run the price down toward $0.20. That level was the low from September 7 and will be the targeted level for DOGE bears to book profit on their short positions, if not all their profit.

DOGE/USD daily chart

DOGE/USD daily chart

Expect buyers to come in at that $0.20 mark to start building up some long positions in the handover from sellers booking profit. If that level does not hold, at $0.19 the monthly S1 support level is waiting to do its duty. In a broader price range, DOGE bulls could go for a fade trade to get long. 

Suppose sellers are stubborn and do not let any opportunity for the buyers to get in. In this case, expect a push through S1 toward $0.15. That level coincides with the low from June 22.

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

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

Read full analysis

BTC

ETH

XRP