- Dogecoin price action is pushing against necessary support.
- DOGE undergoes pressure from bears that still could cover some 15% of ground to the downside.
- Global markets turmoil squeezes bulls out of their positions and could bring price action to $0.13.
Dogecoin (DOGE) is under siege by bears as price action books a fourth consecutive day of losses. DOGE bulls are being pushed up against support at $0.16, which goes back to July 20. If global markets sentiment does not change, more downside is in the pipeline for DOGE, with a dip towards $0.13.
DOGE bears have room to go with no restraints
Dogecoin price cannot go against the flow of current global market sentiment as stock markets are one-directional lower, and bond markets are experiencing a similar phenomenon. Markets look to be gripped by selling pressure and the party’s over, as everyone prepares for the FED to start its hiking cycle in March at the earliest. This depressive mood is further fueled by geopolitical tensions persisting as headwinds.
These elements are reflected in DOGE’s price action, which is slipping below the monthly pivot at $0.17 and pushing bulls against the wall at $0.16. A break lower would mean an accelerated sell-off towards possibly $0.13, which is a longer-term support handle. By then, the Relative Strength Index (RSI) will be nearing or trading in oversold territory. That should present a window of opportunity for investors to engage and pick up Dogecoin at a discount with some uncertainties fading in the markets as a headwind.
DOGE/USD daily chart
As said in the opening part of the article, it is not DOGE as a sole asset, but more global market sentiment weighing and being reflected in the price action. A fade or turn in sentiment would be translated into a positive return for investors, and see DOGE price hitting back at $0.19, with even a possible pop towards $0.22, with the 200-day Simple Moving Average (SMA) acting as a cap. With that move, gains could amount to 40%, with more upside potential towards $0.26.
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.