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Dogecoin Price Prediction: Expect a decline, but don't miss the train if it leaves early

  • Dogecoin price was rejected at the $0.07 barrier.
  • DOGE price sees an increase in market sentiment as Dogecoin is officially accepted by UBER as a valid form of payment.
  • Invalidation of the bearish trend is a breach above $0.078.

Dogecoin price is a cryptocurrency traders should keep firm track of as market conditions could get very volatile in the coming days.

Dogecoin price could outperform most cryptocurrencies

Dogecoin price has recently witnessed a rejection at the $0.07 barrier, which could trigger another sell-off into June's 4-hour supply zone within the $0.05 region. On July 5, 2022, the bears showed up to add weighted pressure, printing a relatively large bearish engulfing candle on the 4-hour chart. This was a subtle display of sellers’ strength, as the candle is now the largest candle established for July.  


Dogecoin price currently trades at $0.066. A Fibonacci projection indicator (surrounding June’s monthly high at $0.078 and the June 29 swing low at $0.0669, projected into July’s newfound swing high at $0.07) shows a 161.8 % Fibonacci level lying within the same vicinity of June’s 4-hour supply zone at $0.05. This target area should be watched very closely for a potential knife-catching opportunity.

tm/doge/7/6/22

DOGE/USDT 4-Hour Chart

On the contrary, there is a chance the continuation of the current downtrend can get overthrown. Just recently, Uber announced their willingness to engage with the cryptocurrency community as they are officially accepting Dogecoin as a valid form of payment for their services. 

Thus, there is speculation amongst the crypto community that more service-providing companies will follow Uber’s trendsetting adoption of the notorious meme coin. The speculation alone should prompt day traders to keep an eye on $0.071, as a breach above it could induce serious volatility. Ultimately a retest of the $0.078 is the safest invalidation of the downtrend. A break of the latter could send the DOGE price into a massive bull run targeting $0.25, resulting in a 285% increase from the current Dogecoin price. 

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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