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Dogecoin price rejection means trouble for next week where DOGE could tank 30%

  • Dogecoin price tries to hold its slim gains over the weekend.
  • DOGE, though, has broken below substantial support, which now has turned into resistance.
  • Expect DOGE to see a violent decline for May, bearing nearly 30%.

Dogecoin (DOGE) price desperately needs some help, although it is questionable which company Elon Musk could buy to place the Dogecoin logo on it. All things aside, this week's performance was a straight F, as the bulls could not reclaim a vital support element. By giving up on the 200-day Simple Moving Average (SMA), the bulls settled for some small profit this week, while things could get ugly as of next week with 30% losses.

Dogecoin price could get a hangover from April’s performance

Dogecoin price is continuing its decline after peaking above $0.100 in early April and has been unable to make it back up there since. Although it briefly looked that April would be becoming its best-performing month, it starts to look that April will have been the pivotal month that has begun a severe decline. Since last week, DOGE has had to give up on the always-important support of the 200-day SMA and is currently at risk of getting a rejection on its topside.

DOGE could tank substantially next week, with a decline below the monthly pivot bearing 10% of losses. Investors could face a difficult week ahead, with the potential for a painful trade resulting in a substantial drop of 25% in the price, akin to a plummeting stone. DOGE would get valued near $0.056 and revisit the low of October last year, erasing all profit on its yearly performance for 2023.

DOGE/USD  weekly chart    

DOGE/USD  weekly chart    

Bulls could still save the day, or the week for that matter, by erasing that rejection that is currently happening on that topside. A break above the 200-day SMA at $0.084 would set the record straight and put bulls in pole position for next week. With 20% gains projected and DOGE hitting $0.100 again, all risk of a decline will be long forgotten.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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