- 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.
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