- Dogecoin price continues to produce lower lows on a four-hour time frame.
- As DOGE approaches the $0.073 support floor, investors can expect a decent bounce to $0.087.
- However, a breakdown of the $0.073 barrier could lead to a 14% descent to $0.062.
Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.
However, denoting the capital rotation away from altcoins, including Dogecoin, is the recent tweet from the Tesla CEO Elon Musk. Often, tweets from Musk including DOGE has caused the price to rally, but despite the recent mention, the dog-themed crypto seems to have remained unaffected.
Dogecoin Trillionaire, the Movie
— Elon Musk (@elonmusk) May 26, 2022
This lack of interest from investors indicates that investors are speculating on relatively stable assets like Bitcoin than extremely volatile assets like Dogecoin.
Dogecoin price and its mysteries
Dogecoin price is undergoing a tight consolidation that is slowly favoring the sellers. The UST depeg-led crash pummeled DOGE to set a swing low at $0.065 on May 12. Although DOGE recovered 44% and set a swing high at $0.096 on May 13, it has been forming lower highs since.
On May 26, Dogecoin price crashed 9.6% and tried recovering these losses as Bitcoin rallied. However, DOGE seems to have run out of fuel as the bounce failed to manifest. This lack of buying pressure could indicate that investors have pulled the capital for risky altcoins.
The only place for this capital to flow is into stablecoins or relatively stable assets like Bitcoin or Ethereum. Hence, investors need to be careful when trading altcoins. As for DOGE, the intermediate support level at $0.073 seem to be here to defend against the downswing. A bounce off this barrier could propel Dogecoin price back to the $0.087 hurdle.
DOGE/USDT 4-hour chart
On the other hand, if Dogecoin price breaks down the $0.073 barrier, it will denote that the sellers are in control and knock the altcoin down to $0.062.
Here, buyers have a chance to regroup and come back. However, a four-hour candlestick close below this level will invalidate the bullish thesis for Dogecoin price. This development could further push the dog-themed crypto to the $0.046.support floor.
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
Coinbase lists WIF perpetual futures contract as it unveils plans for Aevo, Ethena, and Etherfi
Dogwifhat perpetual futures began trading on Coinbase International Exchange and Coinbase Advanced on Thursday. However, the futures contract failed to trigger a rally for the popular meme coin.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
Ethereum (ETH) appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the Securities & Exchange Commission (SEC) and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US Federal Bureau of Investigations (FBI) has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission (SEC) is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?