- Dogecoin price has undone its 18% rally seen this week as markets sell-off.
- DOGE is facing a make-or-break momentum at the $0.072 support level.
- Investors should be aware of a potential 20% crash that could sweep the liquidity resting below $0.057.
Dogecoin price has undone its gains that were accrued earlier this week This development comes as the crypto markets undergo a massive sell-off with Bitcoin at its helm. As a result, DOGE has arrived at a stable support level, where buyers could choose to defend the level and trigger an uptrend, but the likelihood of this outlook is not guaranteed.
Dogecoin price at inflection point
Dogecoin price saw a sudden spike in buying pressure, resulting in a 12% rally on August 12. This move contended with a declining trend line serving as a resistance level for more than 400 days.
The obvious reaction was a rejection that has pushed DOGE to undo its 12% gains. As a result of this correction, Dogecoin price is currently retesting the $0.072 support level. As explained previously, this area will serve as a good level for buyers that missed the previous rally.
However, these investors need to factor in that the ongoing market crash will take a beat. In such a case, DOGE is likely to produce at least a 12% upswing that retests the $0.082 hurdle. Due to the current market conditions, a rejection here could lead to a swift breakdown of the $0.072 support floor and a revisit of the $0.062 barrier.
The best case scenario, for long-term buyers or swing traders, would include a sweep of the equal lows formed at $0.057. This liquidity run is likely to trigger a shift in the trend that will allow investors to ride a quick run-up to either $0.062 or $0.072, in a highly bullish case.
DOGE/USDT 1-day chart
While a downtrend seems more than likely for Dogecoin price, there are opportunities to short the market if the $0.072 support floor breaks. Although unlikely, a daily candlestick close above $0.093 would invalidate the bearish thesis as it does not just break out from the 400+ day declining trend but also flip significant hurdles in the process.
In such a case, investors could expect DOGE to ascend higher and retest the $0.109 hurdle.
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
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.