• Dogecoin price holds 200-day simple moving average (SMA) after breaking down from an ascending parallel channel.
  • DOGE flashes a bearish deviation from other altcoins with just a 17.82% gain since July 21.
  • Bollinger Bands continue to tighten, pushing the Bollinger Width down to the lowest reading since early April, just before the surge higher.

Dogecoin price is still up 5,830% YoY, despite the 80% correction from the May high. The volatility has not transferred to this rally attempt as DOGE has traded in an ascending parallel channel with the 200-day SMA transmitting support. It is a disappointing evolution after the digital asset registered a bullish momentum divergence on the daily chart, beat the resistance of May’s descending trend line and triggered a double bottom pattern. Until Dogecoin price can elevate above the declining 50-day SMA, it is recommended to restrain urges to accumulate a position.

Dogecoin price asking where the whales are hiding

A different environment surrounds Dogecoin price, as the recent social media hype of Elon Musk has failed to engineer a powerful and sustainable rally in DOGE. Earlier in the year, the posts of Elon Musk and other high-profile celebrities could catapult the cryptocurrency notably higher and put DOGE as the lead story on the daily news roll.

Without the momentum of FOMO, created by social media antics, Dogecoin price has reverted to a sleepy altcoin, almost afraid, unable to participate in the impulsive rally being lead by Bitcoin and Ethereum. Unlike the other cryptocurrencies, the DOGE rebound from July 21 has taken on a corrective price structure, not characteristic of a solid bottom supported by whale market operators, leaving DOGE on the outside looking in.

The indecision or fear that has defined Dogecoin price action over the last 15 days has compressed the Bollinger Bands to the lowest range since the period before the April surge. It does not portend a major rally is inevitable, but it does reveal that a substantial move could be around the corner

After falling from the ascending parallel channel, Dogecoin price may be hinting that the significant move is beginning. A daily close below the union of the May 19 low with the 200-day SMA at $0.195 would be the first point of confirmation of a bearish resolution from the sideways price action and position DOGE for a quick drop to the June 22 low of $0.152, and then the April 23 low of $0.135 before the May descending trend line may temporarily rescue it from further losses.

Depending on the momentum of the decline and the conditions in the cryptocurrency complex, Dogecoin price may target the January 29 high of $0.100 before securing a reliable bid, representing a 49% decline from the 200-day SMA.

DOGE/USD daily chart

DOGE/USD daily chart

However, if Dogecoin price captures the 50-day SMA at $0.221 on a daily closing basis, it would nominate a better outcome for DOGE, including a test of the June 25 high at $0.291. An advance to $0.291 would carry a 32% gain and persuade DOGE investors that the token established a final correction low in July.

With the tailwind of a strong cryptocurrency market, the spooked Dogecoin price has failed to plot a bullish outlook. Thus, once the market leaders encounter robust resistance and begin retracing, DOGE will be vulnerable to track the bearish outlook outlined above. Practicing anything but patience right now could incur unnecessary portfolio losses.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP