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Three reasons why DOGE price will not be back above $0.17 anytime soon

  • Dogecoin price is under pressure from both bearish technical elements as tail risks and headwinds.
  • DOGE price set to eke out further losses, all the way to $0.0409.
  • With such a move, losses would sum up to 55% of depreciation.

Dogecoin (DOGE) price is at the cusp of saying goodbye to $0.10 as the price is set to drop another leg lower in the coming week after DOGE price consolidated below that same $0.10. As not even a test to the topside was in the cards, it shows the lack of bulls and capital inflow to squeeze price action higher. At risk is the lack of supportive handles nearby, as the first nearby support level is at $0.040, meaning a 50% depreciation is needed before enough bulls can be found to pick up the price.

DOGE needs to keep an early summer sale with a 50% discount

Dogecoin price is at risk of losing a lot more than just 50% if no new fresh capital is carried in quickly. As the downtrend continues, the most considerable risk comes from the Relative Strength Index (RSI), which is flatlining. As that RSI is not dipping, a long stretch can be unfolding and pulling DOGE price further and over a longer term to the downside. By doing so, investors' interest will fade even more, which could be why DOGE price will never see the light of day again above $0.10.

DOGE price has next to that the issue that a few firm belts are formed on the top sides, with at first the historic pivotal level at $0.1004, next to the 55-day simple Moving Average at $0.1255 that is falling in line with a historic pivotal level and at $0.16 the big 200-day SMA as a cap, both showing their strength and rejection to the upside as see respectively three and four weeks ago. The last element why DOGE price is that the price action is changed to a massive bag of tail risks and geopolitical tensions together with regulatory crackdowns in hindsight. This scares traders and capital inflow away, drying up the buy-side demand and offering room for sellers to push price action even further to the downside, towards $0.0409, shedding 50% of value.

DOGE/USD weekly chart

DOGE/USD weekly chart

Although plenty of topside levels have been identified in the previous paragraph, all this could easily be overthrown if markets can enter calm water. Suppose stock markets could start rallying on economic data for a few consecutive days and get supported in other asset classes. In that case, cryptocurrencies could see capital inflow again, with investors putting money to work to ramp prices up. Plenty of the previously mentioned caps could be broken, axed or sliced through and potentially hit $0.18 to the upside. 

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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