- Dogecoin price broke below the 200-day SMA again last week.
- DOGE is still on track for $0.10, although the ride will be choppy.
- Traders are torn between the hawkish economic data and the market silence on the sense of direction.
Dogecoin (DOGE) is a perfect example of the current situation many traders are in. On the one hand, a Christmas rally could still be underway as $0.10 is still the main goal to reach by New Year, and on the other hand, the last economic data points pointed to a very rough start for 2023 with a global recession and big risk-off moves ahead. What markets will choose will be visible this week.
Dogecoin price set to swing in favor of the bulls
Dogecoin price, at first glance, does not look a pretty picture technically and taking into account the data points communicated last week. First, the 200-day Simple Moving Average (SMA) was broken, opening up the risk for prices to tank further this week. And secondly, the US data points from last week point to a harsh recession and the Fed stepping up its game with more hits, which means more risk-off to come in the first months of 2023.
DOGE, however, could see traders shake off those elements for a moment as traders get the chance to seize the price action. To the upside, $0.090 is the only issue standing in the way for DOGE, with the 55-day SMA as a cap to the upside. Additional incentives to help price action in Dogecoin higher are the Relative Strength Index (RSI), which points to more upside, and the thin liquidity this week that could create high price jumps with less volume, towards $0.100 or 33%.
DOGE/USD weekly chart
The tone could be set for the rest of the year and, going into 2023, unchanged. Dogecoin price would remain in the pattern from the past few weeks, with a sell-on-rally tone. That means that any uptick will be met with heavy bearish trading and could see DOGE tank towards $0.0566 in a nosedive move of -25%.
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
Crypto Today: ADA, AVAX, TON in profit as BTC stalls at $100K
Altcoin market updates: ADA, AVAX, TON emerge as top gainers While BTC has stagnated on Monday, traders are redirecting capital toward mid-cap assets, driving the likes of Cardano (ADA), Avalanche (AVAX) and Toncoin (TON) above key resistance levels.
Ripple's XRP aims for $1.96 as WisdomTree registers for an XRP ETF in the US
Ripple's XRP surged over 7% on Monday and aims to stage a rally toward its April 2021 high after WisdomTree registered for an XRP ETF in the US state of Delaware on Monday.
More Ripple News
Toncoin Price Forecast: Crypto whales spotted buying $30M TON in 4 days, amid Gensler’s exit
Toncoin price opened trading at $6.2 on Monday, up 27% since Gary Gensler's exit confirmation on November 21. On-chain data trends suggest a $7 breakout could follow as whale investors have scaled up demand for TON considerably over the last 5 days.
MicroStrategy set to push Bitcoin to new highs after 55,500 BTC acquisition, should investors be concerned?
MicroStrategy revealed on Monday that it made another heavy Bitcoin purchase, acquiring 55,500 BTC for $5.4 billion at an average rate of $97,862 per coin.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.