- Dogecoin price has been on a downtrend since late February, a stance partially invigorated by Elon Musk’s comment about his interest in AI.
- If DOGE repels the EMAs further, the price could lose the immediate support at $0.0736 and plummet lower.
- A daily candlestick close that flips the resistance level confluence at $0.0823 into a support floor would invalidaet the bearish thesis.
Dogecoin (DOGE) price was trading with a bearish bias since February 19, undergoing a massive down move. Twitter CEO and famed doge father Elon Musk reinvigorated the fire with his tweet about a newly found interest in artificial intelligence (AI).
“I used to be in crypto, but now I got interested in AI"
— Elon Musk (@elonmusk) March 3, 2023
Further inspiring the negative sentiment for the meme coin, Morgan Creek Capital Management chief investment officer Mark Yusko scaled another painful attack on Dogecoin, saying, “meme coins don’t have any value.”
Dogecoin price feels the brunt of tighter interest rates hikes
Dogecoin price is down 11% over the last week and currently trades above the $0.0736 support level. Given Jerome Powell’s testimony hinted at speeding up rate hikes, investors should expect the downtrend to continue.
In such a case, the Dogecoin price could plunge lower to tag the $0.0701 support level before a potential upswing. If the buyers fail to make a comeback, DOGE could plummet to the next support structure at $0.0682. This move, in total, would roughly constitute an 8% selloff.
The undesirable position of the Relative Strength Index (RSI) heading downwards with a price strength of 32 also adds credence to the bearish sentiment.
DOGE/USDT 1-day chart
On the flip side, Dogecoin price noted a bullish cross on the daily chart between the 50-day and 100-day Exponential Moving Averages (EMAs). This technical formation breathes hope for DOGE holders, suggesting a potential for an uptrend.
If sidelined buyers heed the call come to the meme coin’s rescue, Dogecoin price could attempt a recovery rally to tag the $0.0823 resistance level. While this move will attract more investors, only a daily candlestick close above $0.0827 would invalidate the bearish thesis. Such a move would create a higher high and skew the odds in the bulls’ favor and potentially trigger a run-up to the 200-day EMA at $0.0845.
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