Dogecoin price slips as traders wonder why rally fails to rip

Dogecoin (DOGE) price action slipped over 1.5% intraday on Wednesday, whereas overall most cryptocurrencies are up for the day. Helped by a weaker US Dollar and the fact that last night’s events in Poland got degraded to a mere accident, traders are judging whether to stay in their positions. As for DOGE, a sideways to lower pattern is becoming clear. As long as the low of Tuesday holds, all is fine. Should it break, expect a short correction.

DOGE price could act as a canary in the coal mine

Dogecoin price is tumbling, whereas most cryptocurrencies look immune to overnight events. Although the VIX fear gauge dropped, and the EURUSD is back above 1.04, not all traders are convinced of the played-down event from last night. Poland and NATO already said it was an accident, but traders are rethinking whether any rally will be easy.

DOGE price thus sees little interest from traders in putting big chunks of money into it as rallies could easily implode for a few hours should similar events like Tuesday evening repeat themselves. Expect the DOGE price to drop toward the red descending trend line and search for support near $0.08. Should that level be penetrated, support comes in around $0.07, with both the 55-day and 200-day Simple Moving Averages (SMA) coming in as supportive variables.

DOGE/USD daily chart

Should DOGE's price finally catch up with its peers and see that tailwind coming in from US Dollar weakness, a bullish breakout is granted toward $0.0944. Maybe even a little excursion to test $0.10 to the upside will occur. Should the bullish sentiment continue by next week, the next hurdles are $0.11 and $0.1137, with the monthly pivot coming into play.