- Dogecoin price has been in a downward trend since March 1.
- It established a swing low on March 7, roughly 2% short of the current price action.
- A few technical signals suggest that DOGE could drop even further.
Dogecoin price tests the final limits of support as it hovers over $0.115. A shooting star printed on the previous 6-hour chart further confirms a steeper decline.
Dogecoin price puts bulls are in jeopardy
Dogecoin price managed to support establishing a swing low at $0.113 earlier during the week. A rally commenced shortly after sending DOGE price back into the $0.12 zone, printing a final swing high on March 9 at $0.124.
Unfortunately, the rally was short-lived as the bears have wiped out 80% of the bullish momentum that ensued, bringing Dogecoin price back down to test the lows at $0.115.
Day traders should remember that the most recent 6-hour candle is a shooting star, considered a sell signal. It is not advisable to be an early buyer at the moment as Dogecoin price is likely to sweep the liquidity lying under the March 7 swing low at $0.113.
DOGE/USDT 6-Hour Chart
If the bulls cannot provide support in the $0.11 range, then it is very likely that the DOGE price will continue to move south and take out the February 24 swing low at $0.106.
The invalidation for the bearish thesis can only occur if Dogecoin price manages to move back above the shooting star at $0.118. If so, DOGE will likely push past the March 9 high at $0.124 and establish new price action in the $0.13 range.
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.
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.