- Dogecoin price has produced the largest bearish candle of the year.
- DOGE price could be coiling into a descending triangle.
- Invalidation for the bearish thesis is a close above $0.18.
Dogecoin price has produced the largest candle this year in favor of the bears. DOGE enthusiasts should consider a bearish macro scenario.
Dogecoin price looks dangerous
Dogecoin price has displayed serious bearish signals as the token failed Tuesday's $0.17 breakout. The large bearish engulfing candle produced a 20% decline on the daily chart, which signals supreme control of the trend. The bears have likely trapped breakout traders at the $0.17 zone and anyone who did not quickly take profit from last week's successful trade setup.
Dogecoin price currently trades at $0.146. The volume indicator from yesterday's sell-off shows profound bearish control, and the bulls have yet to display any comparable retaliation. When observing the structure of what led up to the massive sell-off, it appears that the bears have always been present. The popular meme coin is coiling in a descending triangle-like manner.
DOGE/USDT 1-Day Chart
Analysts at FXStreet have maintained that Dogecoin price will eventually retest a historical trendline at $0.09 and possibly $0.08. The coiling wedge now sheds light on how the bears will manage to pull off such a cataclysmic move. In the short term, analysts will be looking for a wave D of the triangle to land in the $0.12 zone.
Invalidation for short-term traders will be a closing candle above wave C at $0.18. It is worth noting that C waves are commonly known to be complex structures. Thus a break above $0.18 will not void the overall triangle formation. Investors should be aware that Dogecoin price has been deemed high risk and unfavorable until wave A at $0.2150 is breached. If this scenario occurs, analysts will develop a trade setup to partake in the next meme token rally, which could land the Dogecoin price back to $0.25.
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
Raydium soars 18% as Upbit lists RAY/KRW and RAY/USDT trading pairs
Raydium (RAY) price rallies more than 18% on Thursday after rebounding from its key support the previous day. The main reason for RAY’s rally is that Upbit, South Korea’s largest cryptocurrency exchange, announced the listing of RAY trading pairs.
Ethereum Price Forecast: ETH stays muted as uncertainty from Middle East crisis weighs on market sentiment
Ethereum (ETH) held steady around $2,500 in the early Asian session on Thursday following mixed activity across its on-chain data. Ethereum is experiencing calmness in its on-chain metrics following an extended period of price consolidation that has spanned the past six days after dropping from above $2,700.
Top 3 Crypto Gainers: RAY, AERO, SPX shrug off market volatility, record double-digit growth
Decentralized Finance (DeFi) tokens such as Raydium (RAY), Aerodrome Finance (AERO), and SPX6900 (SPX) outperformed the broader cryptocurrency market over the last 24 hours, following the Federal Reserve's decision to keep the policy rates unchanged at 4.25%-4.5% in the June policy meeting.
Bitcoin, Ethereum, XRP hold steady as Federal Reserve leave rates unchanged
Bitcoin (BTC) and altcoins, including Ethereum (ETH), XRP, and Solana (SOL), saw slight movements on Wednesday as the crypto market stayed resilient following the Federal Reserve's (Fed) decision to leave rates unchanged at 4.25%-4.50%.
Bitcoin: BTC could slump to $100K amid Trump-Musk tussle
Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.