Dogecoin price needs more time to decide who's in charge as the bears scathe $0.14

Dogecoin price is selling off after a 14% bull rally earlier this week
Dogecoin price has a strong Fibonacci magnet in the $0.12 zone
A close below $0.12 will invalidate the neutral thesis

FXStreet Team FXStreet

Dogecoin price is experiencing more sell pressure today as the price has recently soared back to $0.14. Today's price is currently just above $0.13 and falling by the hour.

Dogecoin price is experiencing pressure

Dogecoin's price indicates future downside momentum as the bears have printed a large bearish engulfing candlestick on the 3-hour chart. This Monday's bullish thesis mentioned that the popular meme coin would see a 14% rally if the price could sustain a close above the .5 Fibonacci level at $0.12. A day later, the bulls came out in full force to validate the technical analysis, ultimately taking three days to reach the intended 14% target at $0.14.

Dogecoin price is now experiencing some pressure. For one, the volume coupled with the 3-hour bearish engulfing candle has increased in the bear's favor. The bowl-like pattern displayed can also be used to project future price action.

DOGE/USDT 3-Hour Chart

The .5 Fibonacci at the $0.12 level is likely where sidelined traders are waiting. If the Dogecoin price can find support at the .5 Fib, the price will likely continue higher above $0.14. However, if not, the Dogecoin price is likely to sweep the lows at $0.115, resulting in a 12% dip in price.