Dogecoin price left out of the relief rally
|- Dogecoin has been unable to tag along with the broader crypto recovery going into its second trading day.
- DOGE price seems rather set to trade sideways-to-lower from investor lack of interest.
- Do not expect massive rallies, as investors are only on the lookout for short-term opportunities.
Dogecoin (DOGE) price has been left out of the relief rally that is going on in markets for the second day in a row. Safe-havens are coming off their highs in several asset classes, and risk assets such as cryptocurrencies are seeing more inflows. The risk is that Dogecoin price will miss the boat and see investors turning their back even further on the altcoin, leading to a deeper decline in price action soon.
DOGE is set to be on the sell list in this unique rally
Dogecoin price is printing small gains compared to several other characters in the same asset class, such as Bitcoin for example, which is printing over 2% gains versus only 0.33% for DOGE. This points to an important element to understand in this relief rally: traders and investors are picking the very liquid and more traded assets instead of choosing the alt-currencies. This means that DOGE price is missing the boat whilst the participants are very much aware that the rally will be short-lived.
DOGE price is at risk, and is seeing its price action drop back towards the lower levels from 2022. Do not expect to see the $0.0484 level straight away, but rather look for $0.0550 to be challenged first, at the monthly S1 and the low of September. It would take another catalyst to trigger the drop towards $0.0484, which would come with a loss of 20%.
DOGE/USD Daily chart
Alternatively, it could also be the case that DOGE price catches up, rallying higher and seeing more inflows from traders and investors as a turnaround in the market could be at hand. In that case, expect to see a DOGE price valuation around $0.0650. The subsequent 55-day Simple Moving Average (SMA) is likely to be too much of a cap, however, refraining bulls from making more profits and higher highs.
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