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Smart Money vs Dumb Money: Who controls the Dogecoin price?

  • DOGE price is detrending from the bullish countertrend rally.
  • Dogecoin price volume pattern is anomalous.
  • Invalidation of the bullish thesis is still a close below $0.069.

Dogecoin price has begun to detrend from the bias developed in last week’s thesis. The target of $0.11 may not be achieved. 

Dogecoin price has a big question mark

Dogecoin price has recently shown bearish re-entrance in the market. The bulls lost about 10% of gains made since the uptrend on May 27. The new decline throws off the trajectory for the DOGE price and now places a large question mark surrounding the notorious meme coin’s future. 

Dogecoin price could continue to confuse investors in the coming days. The Volume indicator looks very questionable. Traders should wait for the week to finish before establishing a new position. Despite the erratic price behavior, there is one certainty traders can believe in. Smart money is involved with the DOGE price, but the direction they choose to send the popular dog coin is still unclear.

tm/doge/6/2/22

DOGE/USDT 4-hour chart

Invalidation of the bullish scenario is still a breach and close below $0.069. If the bears can conquer this level, a devastating decline to $0.05 could occur, resulting in a 40% decrease from the current DOGE price.

Author

Tony M.

Tony M.

FXStreet Contributor

Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.

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