Share:
  • Dogecoin price is being pressed down by the weight of the 50-day simple moving average (SMA). 
  • DOGE may close today with the biggest gain since the July 21 breakout from the May descending trend line.
  • Oscar Mayer taps the Dogecoin fever with a limited edition pack of Hot Doge Wieners.

Dogecoin price action has been uneventful since the July 21 breakout, offering few clues about directional intentions. The lack of volatility has resulted in several doji candlestick patterns on the daily charts, signifying that DOGE speculators are uncertain and reluctant to accumulate the meme token despite the booming returns for Ethereum and Bitcoin. Thus, with no sustainable bid, Dogecoin is vulnerable to a break to the downside if the cryptocurrency complex is hit with selling pressure.

Dogecoin enthusiasts have the opportunity for a DOGE hot dog

Oscar Mayer, the famous brand for wieners, announced on August 4 that it has a “limited-edition pack of Hot Doge Wieners” with a cash value of 10,000 Dogecoins, which equates to around USD 2,050 at the current price. To amp up the interest, Oscar Mayer produced only one pack that was put up for bid on eBay at a starting bid of USD 0.99.

The public response was overwhelming, breaking the eBay link and pushing the bid up to $3,450 later in the day.

Oscar Mayer is not the first consumer company to indulge the Dogecoin mania. In July, AXE created a limited supply of 'Dogecans' that were sold out immediately. Similarly, Slim Jim generated a significant jump in customer interactions after launching a dogecoin-focused marketing strategy earlier this year.

The excitement over the Hot Doge Wieners did not positively impact Dogecoin price as DOGE is up 0.90% for the week.

Dogecoin price needs a bigger catalyst  

The disinterest, indecision or fear that has defined Dogecoin price action over the last 17 days has compressed the Bollinger Bands to the tightest range since the period preceding the explosive April rally. It does not predict a continuation of the doddering DOGE rally, but it does hint of a substantial move shortly.

Adding to the limited volatility is the ongoing convergence of the 50-day SMA at $0.217 with the 200-day SMA at $0.197, thereby establishing pivot prices for future DOGE investment decisions.

A daily close below the intersection of the 200-day SMA at $0.197 with the May 19 low of $0.195 would be the first confirmation of a bearish resolution from the trendless Dogecoin price action. It would immediately position DOGE for a quick drop to the July 20 low of $0.159 and potentially the June 22 low of $0.152. If Dogecoin price does not attract a bid at the June 22 low, the altcoin will drop to the April 23 low of $0.135, logging a 30% decline from the May 19 low.

DOGE/USD daily chart

DOGE/USD daily chart

Alternatively, if Dogecoin price claims the 50-day SMA at $0.217 on a daily closing basis, it would project a bullish DOGE narrative that will include a test of the June 25 high of $0.291, representing a 34% profit for timely speculators. The only resistance of importance before the June 25 high is the July 26 high of $0.242. 

A bullish cryptocurrency complex and a new Oscar Mayer market strategy built around Dogecoin has not unlocked Dogecoin price from the trendless action that has dominated since July 22. The passive trading has the technicals pointing to lower prices, but for now, patience is the only investment tactic that will work with DOGE. 

Here, FXStreet's analysts evaluate where DOGE could be heading next as it seems bound to retrace before rising.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin price outlook as MicroStrategy buys 3,000 BTC just 52 days before halving

Bitcoin price outlook as MicroStrategy buys 3,000 BTC just 52 days before halving

Bitcoin (BTC) price continues to ride on the exchange-traded funds (ETF) theme, as markets count the days to the halving, 52 days out (just about seven to eight) weeks). Meanwhile, Microstrategy has taken advantage of the current lull in the market to grow its BTC portfolio with yet another volumnous purchase for the second time in the month. 

More Bitcoin News

Pepe Price Prediction: PEPE is an outlier with over 15% gains as meme coins post single-digit surges

Pepe Price Prediction: PEPE is an outlier with over 15% gains as meme coins post single-digit surges

Pepe coin (PEPE) price is trading with a strong bullish bias, outperforming the meme coin top four, including Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk Inu (BONK), which are up by single digits. Meme coins appear to be rallying after the Bitcoin price showed strength.

More Cryptocurrencies News

BTC ETF AUM could surpass Gold, expert says, amid enthusiasm for new investment funds

BTC ETF AUM could surpass Gold, expert says, amid enthusiasm for new investment funds

In a landmark decision on January 10, the US Securities & Exchange Commission (SEC) approved multiple spot Bitcoin exchange-traded funds (ETFs) in a single go. Almost seven weeks down the line, the theme continues to drive the cryptocurrency market, giving investors the train to ride on as markets prepare for the BTC halving in 52 days.

More BTC News

Cardano price notes further decline, report reveals ADA ecosystem is plagued with dead coins

Cardano price notes further decline, report reveals ADA ecosystem is plagued with dead coins

Cardano price continued its decline on Monday. ADA price dropped nearly 3% in the past 24 hours. In a recent report by Alpha Quest, the protocol ranks in the top 10 blockchains that host dead coins. 

More Cardano news

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP