Dogecoin price on 15% downward trajectory as more bulls ready to unwind their positions

Dogecoin price has said goodbye to a bag full of key supportive elements.
DOGE points to more downside with only one supportive element between now and $0.06.
Expect another 15% drop once a new low is printed for May.

Dogecoin (DOGE) price is under pressure from the financial markets' wisdom to “sell in May and walk away”. That narrative is perfectly aligned with the ongoing situation this Thursday in Dogecoin price action. With another slide lower, the end is not yet in sight as bears are projecting to see this sell-off through toward $0.06.

Dogecoin price undergoing rule of thumb in financial markets

Dogecoin price has already shredded 10% of its value since May 1, which could even double if bears get their way. DOGE has already breached the bullish elements from both the 55-day and the 200-day Simple Moving Averages (SMAs), which were vital to keeping the bull run alive. With those elements in the bin, breaking the green ascending trendline means that price action will head toward the point of origination.

DOGE is thus caught in a purely technical trade that follows two creeds: one is, as already mentioned, the selling pressure in May. The second element is that once an ascending trendline breaks to the downside, often a full unwind of that same rally occurs. In this sense DOGE is set to tank another 15% toward $0.06 where that trendline originated from. The only caveat is the monthly S1 support near $0.068, where bulls could try and limit that loss. Once broken, however, it would confirm the upcoming 15% loss.

DOGE/USD 4H-chart

A turnaround would come when some nervousness is taken out of the markets. The number of tail risks, such as the US debt ceiling and the Russia-Ukraine war, could get resolved or at least head in that direction. That would be a big support for risk assets with crypto at the forefront. A major change in sentiment could ahve DOGE pop back above $0.085 and pare back incurred losses for the month thus far.

Share: Cryptos feed

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.

Join Telegram