- Dogecoin price action enters back below the descending trend line.
- DOGE price set to continue downtrend as the geopolitical situation deteriorates market sentiment.
- Expect DOGE price to slip below $0.1 in the coming days once the monthly S1 support is broken.
Dogecoin (DOGE) price is set to start up its downtrend again as price action slips below the long-term red descending trend line from August 2021 again as geopolitical news and the looming Fed rate decision is weighing heavily on cryptocurrencies. The monthly S1 support level at $0.12 is the only nearby support to keep losses limited. Once that gives way, expect an accelerated sell-off towards $0.094, slipping below $0.1, and holding 30% losses.
Dogecoin bears ready to book 30% gains
Dogecoin price looked to be starting the week in a promising fashion as DOGE price booked gains on Sunday. But sentiment quickly deteriorated after a series of events on Monday morning as the geopolitical situation between Russia and the US worsened and market participants decided to stay on the sidelines ahead of the FED rate decision later in the week. As bears smell their opportunity to drive DOGE price lower, a break below the red descending trend line from August just adds arguments to their case to go in big for a short squeeze lower.
DOGE price will see the S1 monthly support at $0.12 as the first and only support element near-term as it held the dip on January 22. A break below would see lots of stops from bulls triggered and give bears a free ride towards $0.094, which was the low of April 14 and a pivotal point in the uptrend. Expect bears to book profits at that level, as it would constitute another 30% profit from entry at the red descending trendline near $0.13.
DOGE/USD daily chart
As previously mentioned, the S1 support level could still refrain DOGE price action from shedding additional value. When that level holds, expect markets to perceive this as proof that bullish presence is there and set the scene for a false dip followed by a breakout above the red descending trend line again. Bulls would then flock into the DOGE price reaction and ramp up price action back towards $0.16 or even $0.19, if current headwinds fade as quickly as they came.
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.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.