Dogecoin price tests $0.21, increasing potential for 23% nosedive

  • Dogecoin bulls attempted to break out of the downtrend. 
  • As DOGE price action did not hit any precise profit levels and with price action already fading to the downside, a false breakout appears to unfold. 
  • Expect a break of $0.21 to the downside, which opens a can of downtrend toward $0.16.

Dogecoin (DOGE) price action overhauled the downtrend with bulls trying to break the chains. The attempt looks likely to fail as no fundamental profit levels to the upside have been hit, and price action looks to be fading to the downside toward a retest of $0.21. A break lower would put bears back in control with a possible 23% devaluation of DOGE price toward $0.16.

Dogecoin price is revealing weakness amongst the bulls, bears waiting to strike

Dogecoin (DOGE) price action was slightly favoring the bulls with a break higher, out of the purple descending trend line. Unfortunately, the breakout faded instantly, which showed that the pop was built on the foundation of short-term profit-seeking bulls, which had no plans at all to stay in for the long haul. Bears are now slowly but surely taking over with a break of the support level at $0.21. 

DOGE will be handed over at the mercy of the bears. Around $0.19, there will be some short-term support from bulls who look to play the low from September. But further than that, nothing in the way for price action to dip toward $0.16. That level goes back to August 20 and comes in just above the monthly S1 support level.

DOGE/USD daily chart
DOGE/USD daily chart

Expect bears to push for that $0.16, but once there, it will get tricky as bulls start picking up DOGE price action at an attractive discount. With the entry point just above the monthly S1 pivot level, stops will be put safely below there. Bulls have had an excellent entry for a long here, making it a level where bears will all but almost entirely book their profit. 

If the $0.21 level holds, expect prices to ramp up again toward $0.26, with the uptrend being further tested but still not broken in full. This means bulls will be cautious and aware that sentiment could slide quickly overnight to the downside.

Like this article? Help us with some feedback by answering this survey:

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

Omicron crypto surges over 200% after being named as new COVID-19 variant

While cryptocurrency prices retraced after the new coronavirus variant Omicron emerged earlier this week, the digital asset with the same name gained popularity and surged over 200%. The small-cap crypto describes itself as a decentralized reserve currency on the Abribtrum Network.

More Cryptocurrencies News

SafeMoon price dips into buy zone, hints at the start of an 80% bull run

SafeMoon price saw its uptrend face a massive blockade, triggering the start of a huge pullback. Due to the retest of a bullish zone, market participants can expect SAFEMOON to restart its bull rally. SafeMoon price rose 484% from its low at $0.00000104 to $0.00000609 in a month.

More SafeMoon news

Basic Attention Token bucks downtrend with explosive rally to new all-time high

Basic Attention Token has snubbed the crypto downtrend and hit a new all-time high above $1.90. Brave browser has crossed 42 million active users, and BAT token utility is on the rise. Analysts predict a rally in the token.

More Cryptocurrencies news

Vitalik Buterin announces Ethereum scaling roadmap using the Graph protocol

Ethereum co-founder Vitalik Buterin revealed a strategic roadmap to expand the available data space for rollups using Graph protocol. The token’s trade volume has increased, and analysts expect an upwards move in GRT price. 

More Ethereum news

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!