Share:
  • Dogecoin price holding the 50-day simple moving average (SMA) as cryptocurrency market presses to the downside.
  • A decisive close above the descending channel’s upper trend line renews bullish outlook.
  • DOGE shows a doji candlestick on the monthly chart, marking indecision among investors.

Dogecoin price recovered the 50-day SMA on May 19, unlike most other cryptocurrencies. The descending channel’s midline has reinforced the support. Heading into the last week of May, DOGE may continue to consolidate the rebound at today’s levels, but in a market overrun with selling, the odds are not in favor of a bullish outcome.

Dogecoin price recovery needs more than social media

From the May 8 high to the May 19 low, Dogecoin price collapsed over 70%, generating one of the largest declines for any cryptocurrency over that time frame. On May 19, DOGE fell 60%, one of the largest declines during the crash, before bouncing 70% by the close.  

The Dogecoin price crash overwhelmed support at the declining channel’s lower trend line at $0.265, the 78.6% Fibonacci retracement of the rally from the April 23 low to the May 18 high at $0.269 and a price range defined by multiple daily lows in April between $0.225 and $0.250.

Today, Dogecoin price is trading in line with Bitcoin, down around 11% at time of writing, demonstrating an elevated level of relative strength compared to most of the cryptocurrencies under coverage. However, as was witnessed on May 19, DOGE is vulnerable to wide price swings in times of market dislocation. That will be no different in the future, especially considering the increasing number of traders operating in the meme-based token.

Due to a generally bearish bias on the crypto market, the short-term outlook for Dogecoin price is also negative. Immediate support continues to develop at the 50-day SMA at $0.319 and the channel’s midline around $0.320. A new rush of selling will quickly test the 78.6% retracement at $0.269 before finding a struggle at the confluence of the channel’s lower trend line with the previously mentioned price range at $0.243.

Any further Dogecoin price weakness will target the May 19 low at $0.195 and potentially the April 23 low at $0.135.

DOGE/USD daily chart

A bullish resolution of the DOGE consolidation needs a daily close above the channel’s upper trend line at $0.461. The subsequent resistance levels are the May 14 high at $0.604 and the topside trend line at $0.943.

DOGE is a unique investment situation due to the continual support from recognized business people channeled through social media platforms. It has been demonstrated that a simple tweet can catapult Dogecoin price well beyond 20% in a matter of minutes. However, in this new environment created by the May 19 crash combined with the indecision expressed by the doji candlestick on the monthly chart, DOGE investors will need more than a tweet to overcome the current technical challenges.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Ethereum whales turn bullish with Shanghai upgrade less than a month away

Ethereum whales turn bullish with Shanghai upgrade less than a month away

Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors. 

More Ethereum news

Ripple price to close the week with a bang as next week will be crucial for another 20% profit

Ripple price to close the week with a bang as next week will be crucial for another 20% profit

Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.

More Ripple News

Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?

Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?

Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.

More Cardano News

Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?

Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?

Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.

More Cryptocurrencies News

Bitcoin: Should you trust this BTC sell signal or wait for $34,000?

Bitcoin: Should you trust this BTC sell signal or wait for $34,000?

Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state. 

Read full analysis

BTC

ETH

XRP