Dogecoin price likely to print a new low as DOGE bears push past $0.116
- 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.
Author
FXStreet Team
FXStreet
