Dogecoin Price Prediction: DOGE bears gathering strength to retest 200-DMA at $0.1732
- Dogecoin price eyes a break below this key support on the daily chart.
- The critical 200-DMA support at $0.1732 remains on the sellers’ radars.
- DOGE bulls continue to face stiff resistance at the 21-DMA barrier.
Dogecoin (DOGE/USD) is adding onto Saturday’s downbeat momentum after the July 9 rebound faced rejection once again at higher levels.
On Friday, the canine-themed currency showed fresh signs of life and rallied about 8% after Tesla Inc.’s founder, Elon Musk, tweeted in support of Dogecoin, citing that Bitcoin and Ethereum were pursuing a multi-layer transaction system, but their transaction rate was "slow" and cost "high."
Musk's comment came after a Dogecoin investor and YouTuber Matt Wallace tweeted out: "Reminder: The Dogecoin update is coming soon.”
In Sunday’s trading so far, DOGE price is closing in on the two-week lows of $0.1946 reached earlier this week, tracking a sluggish crypto market sentiment.
DOGE/USD: Technical setup points to a retest of critical 200-DMA support
The meme-coin’s daily chart shows that the price is set to book the fifth straight weekly loss, following the 21-Daily Moving Average (DMA) resistance at $0.2443 since early June.
The lower highs, thus formed, have kept the bears alive and kicking, as they await a strong catalyst to begin another downswing, especially after last week’s sluggish price action.
Such a price action implies that DOGE bears will likely retain control so long as the price holds below the latter. Therefore, sellers remain on track to challenge the powerful ascending 200-DMA support, now at $0.1732.
The rising trendline support at $0.2011, however, could test the bearish commitments before heading towards the 200-DMA cap.
The 14-day Relative Strength Index (RSI), a leading indicator, continues to point southwards while wallowing in the bearish zone, indicating that there is more scope for the downside.
Adding credence to the move lower, a bear cross got confirmed on the said time frame on July 7 after the 50-DMA pierced through the 100-DMA from above.
DOGE/USD: Daily chart
Only a daily closing above the 21-DMA could negate the bearish momentum in the near term by reviving the buying interest.
The DOGE buyers would then target the downward-pointing 50-DMA at $0.2922. Further, the $0.3000 round number could limit the bullish traders.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
