• Dogecoin price remains in the red for the third day in a row.
  • A wall of resistances on the 4H chart keeps DOGE exposed to downside risks.
  • DOGE bears target the next support at $0.26 amid bearish RSI.

Dogecoin (DOGE/USD) sellers appear to take a breather, although remain on the defensive so far this Sunday, especially in light of Wednesday’s massive crash.

During the midweek market meltdown, DOGE price lost as much as 55% at one point before closing the day 30% lower around $0.33.

Elon Musk, Tesla Inc’s founder, tweets in the aftermath of the crash failed to offer any respite to the meme-based coin, as China’s regulatory clampdown on the crypto markets outweighed the optimistic remarks from the world’s third-richest person.

"Yeah, I haven't & won't sell any Doge," Musk said on Twitter in response to a tweet on Thursday claiming he would never sell any of his doge holdings and that he was the "ultimate hodler".

The sixth-largest digital currency, with a market capitalization of $43.67 billion has immensely benefited by the celebrity endorsement so far this year, as it remains Musk’s most favorite crypto coin.  

DOGE/USD: Risks remain skewed to the downside

Dogecoin’s four-hour chart shows that the price is in a consolidative mode below the critical short-term 21-simple moving average (SMA) at $0.3623.

Despite the market turbulence experience this week, the DOGE price continued to trend within the two-week-old falling wedge formation.

The Relative Strength Index (RSI) points south towards the oversold territory while currently trading at 37.20.

Therefore, the DOGE bears could test the falling wedge support at $0.2602 if a fresh selling wave grips the broad crypto space.

The swing low of $0.1950 could be retested should the price yields a falling wedge breakdown.

DOGE/USD: Four-hour chart

However, a rebound from the wedge support could call for a test of the 21-SMA resistance, above which the 200-SMA at $0.4199 could be challenged.

The next bullish target aligns at $0.4304, where the 50-SMA and wedge resistance coincide.

A four-hourly candlestick closing above the latter would confirm a wedge breakout, with the descending 100-SMA at $0.4841 emerging as the immediate hurdle.


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.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Three reasons why Chainlink could rally

Three reasons why Chainlink could rally

Chainlink has noted accumulation by large wallet investors for the past two weeks. Nearly $110 million in LINK has been withdrawn from exchanges in this time period. LINK sustained above $13 on Sunday, extending gains by nearly 1%. 

More Chainlink News

Ripple holds on to double-digit gains, highest in top 20 cryptocurrencies

Ripple holds on to double-digit gains, highest in top 20 cryptocurrencies

Ripple rallied over 19% in the past seven days per CoinGecko data. The altcoin broke past resistance at $0.50 on the one-year anniversary of Judge Analisa Torres’ XRP ruling. 

More Ripple News

Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump

Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump

Bitcoin extended gains post the shooting at the rally of US Presidential candidate Donald Trump. The former President is a pro-crypto candidate, and a report by Fortune shows that Trump’s chances of winning the race increased after the Saturday events.

More Bitcoin News

Ethereum ETF launch could push Ether to new all-time high, on one condition

Ethereum ETF launch could push Ether to new all-time high, on one condition

Ethereum (ETH) traders are watching two key events closely: the anticipated approval of the Spot Ether ETF and the activities of whales, the large wallet investors holding ETH. An analyst has predicted that the odds of Spot Ether ETF is 72.7% this week. 

More Ethereum News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP