• Dogecoin price holding the 50-day simple moving average (SMA) as cryptocurrency market presses to the downside.
  • A decisive close above the descending channel’s upper trend line renews bullish outlook.
  • DOGE shows a doji candlestick on the monthly chart, marking indecision among investors.

Dogecoin price recovered the 50-day SMA on May 19, unlike most other cryptocurrencies. The descending channel’s midline has reinforced the support. Heading into the last week of May, DOGE may continue to consolidate the rebound at today’s levels, but in a market overrun with selling, the odds are not in favor of a bullish outcome.

Dogecoin price recovery needs more than social media

From the May 8 high to the May 19 low, Dogecoin price collapsed over 70%, generating one of the largest declines for any cryptocurrency over that time frame. On May 19, DOGE fell 60%, one of the largest declines during the crash, before bouncing 70% by the close.  

The Dogecoin price crash overwhelmed support at the declining channel’s lower trend line at $0.265, the 78.6% Fibonacci retracement of the rally from the April 23 low to the May 18 high at $0.269 and a price range defined by multiple daily lows in April between $0.225 and $0.250.

Today, Dogecoin price is trading in line with Bitcoin, down around 11% at time of writing, demonstrating an elevated level of relative strength compared to most of the cryptocurrencies under coverage. However, as was witnessed on May 19, DOGE is vulnerable to wide price swings in times of market dislocation. That will be no different in the future, especially considering the increasing number of traders operating in the meme-based token.

Due to a generally bearish bias on the crypto market, the short-term outlook for Dogecoin price is also negative. Immediate support continues to develop at the 50-day SMA at $0.319 and the channel’s midline around $0.320. A new rush of selling will quickly test the 78.6% retracement at $0.269 before finding a struggle at the confluence of the channel’s lower trend line with the previously mentioned price range at $0.243.

Any further Dogecoin price weakness will target the May 19 low at $0.195 and potentially the April 23 low at $0.135.

DOGE/USD daily chart

A bullish resolution of the DOGE consolidation needs a daily close above the channel’s upper trend line at $0.461. The subsequent resistance levels are the May 14 high at $0.604 and the topside trend line at $0.943.

DOGE is a unique investment situation due to the continual support from recognized business people channeled through social media platforms. It has been demonstrated that a simple tweet can catapult Dogecoin price well beyond 20% in a matter of minutes. However, in this new environment created by the May 19 crash combined with the indecision expressed by the doji candlestick on the monthly chart, DOGE investors will need more than a tweet to overcome the current technical challenges.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP