Dogecoin Price Forecast: DOGE is at risk of plummeting, according to technicals
|- Dogecoin price faces significant selling pressure in the short-term.
- A key indicator has presented a strong sell signal on the 12-hour chart.
- DOGE bulls must defend a key support level to avoid a significant fall.
Dogecoin has been trading in a short-term downtrend, despite Mark Cuban's positive comments in the past two days. The digital asset is at risk of a significant drop if it can't stay above a critical support level.
Dogecoin price at risk of a significant correction
On the 12-hour chart, the TD Sequential indicator has just presented a sell signal. If Dogecoin price can't hold the $0.054 support level at the 61.8% Fibonacci level, DOGE will likely fall towards $0.052 and as low as $0.049 at the 38.2% Fib level.
DOGE/USD 12-hour chart
The In/Out of the Money Around Price (IOMAP) model shows that the area between $0.053 and $0.054 is the most significant support range. A breakdown below this point will push Dogecoin price down to $0.049, the same price target given by the Fibonacci Retracement indicator, adding credence to this theory.
DOGE IOMAP chart
To invalidate the sell signal, Dogecoin must climb above the last high of $0.0587 and see a 12-hour candlestick close there. The next resistance point is located at $0.063.
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.