- Dogecoin price coils near the lower end of a range.
- The strongest bullish candles within the range have been reversed.
- An additional 10% drop is expected to occur in the coming days.
Dogecoin price shows suppressive price action, which could lead to a further decline.
Dogecoin could fall soon
Dogecoin price could be setting up for liquidation of the September lows. Since the middle of August, DOGE has lost 30% of its market value. The bulls have failed to promote a retaliation lasting longer than a few hours. The suppressive manner suggests the world's notorious dog coin is on a tight leash. Breakout traders are likely trapped, and an additional decline is on the horizon.
Dogecoin price currently auctions at $0.059 as the bears reject access to the $0.06 barrier reinforced by the 8-day exponential moving average. The Relative Strength Index has lost supportive grounds upon the recent downswing to $0.053. Although there has been an uptick in volume during green days within the range, the majority of the candles have been fully reversed, which is a bad sign for the overall trend.
DOGE USDT 4-Day Chart
If market conditions persist, a Wall Street liquidstion event targeting $0.053 could occur. If the bulls cannot hold support at this level, an additional fall of $0.04 might be imminent. Invalidation of the bearish thesis is a breach above the swing high at $0.089.
In the following video, our analysts deep dive into Dogecoin's price action, analysing key market interest levels. - FXStreet Team
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