- Dogecoin price failed to break out and has since lost 30% of market value.
- DOGE price has breached the ascending trendline that provided bullish support throughout the summer.
- Holding the profittable trade over the weekend comes with forseaable risk.
Dogecoin price fools breakout traders as bears aim to wipe out summer's gains.
Dogecoin price falls accordingly.
Dogecoin price currency auctions at $0.06 as the bears have managed to breach the July 26 swing low. The end-of-month low was established before a 49% rally with breakout bulls considering a potential 200% bull run.
Dogecoin price would end up fooling the participants of the prospective triangle breakout as it topped at $$0.087 on August 16. The world's notorious meme coin then fell penny-from Eiffel style and has since brought a 30% loss of market value to the Dogecoin community.
Last Month's Trade Idea
Amidst the breakout, the call was made not to partake in the hype as the $0,088 level showed considerable smart money involvement.
"Dogecoin price could be a sucker's rally. Placing a short entry will be justifiable if bulls cannot hold support above $0.085."
DogeCoin 9/17 Bearish Trade Thesis
Hours later, the bears forced the Doge through the definitive line in the sand, catalyzing the 30% decline.Traders participating in the bearish trade idea are currently in profit .93% x their initial risk capital.
In Summary
The DOGE price has breached through a supportive trend line which has provided support for the digital dog coin through the majority of the summer. If market conditions persist, an additional 20% plummet will likely wipe out trading liquidity under the June 18 swing low at $0.059.
However, trying to hold on to the trade in hopes of scavenging the last bit of the forecasted profit will be highly risky. Weekends tend to witness smart money liquidations, and the DOGE price holds no authority for exemption.
Invalidationof the bearish thesis aiming for the June 18 swing low at $0.049, remains above $0.112.
In the following video, our analysts deep dive into the price action of DOGE, analyzing key levels of interest in the market. -FXStreet Team
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