- 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%.
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