- Dogecoin coils within a newfound congestion zone for nearly 2 months..
- A sweep the lows event could present itself in the coming days..
- Invalidation of the bearish scenario is a definitive closing candle above $0.0780. Said price action would induce a 75% rally towards $0.12.
DogeCoin price could experience a smart money liquidation targeting the lows at $0.05
Dogecoin price suggests caution
Dogecoin price shows weakness to start the 2nd week of August. Since early June previous outlooks have identified conservative and FOMO-induced bullish targets based on confounding bullish evidence. However the notorious meme coin has yet to validate even the most conservative bullish targeting $0.085. DOGE’s continuous congestive nature is the first anomaly to suggest a smart money threshold preventing the anticipated bullrun.
Dogecoin price currently trades at $0.070 as the bears are stepping in to force yet another lower high on the daily chart. The Relative Strength Index substantiates the newfound bearish outlook as bearish divergence is displayed between today’s current auction and previous swing highs established in both June and July. Lastly the volume profile indicator could be viewed as contrarian bearish, lack of interest from market participants could be attributed to the mundane price action.
DOGE/USDT 1-Day Chart
If the technicals are correct, traders should be very cautious with the Dogecoin token at current market value as smart money could induce a liquidation targeting the $).05 lows. The bullish scenarios targeting as high as $0.25 have not been invalidated but being an early buyer would be ill-advised. A breach of this bearish outlook’s invalidation point at 0.0780 would also justify an entry targeting bullish prices mentioned above. Traders should keep the Dogecoin price on their watchlists with multiple alerts to keep track of the unfolding scenario.
In the following video, our analysts deep dive into the price action of Dogecoin, analyzing key levels of interest in the market. -FXStreet Team
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