- Dogecoin price up 5% on the week but shows resistance above current levels.
- The bears could induce a 20% decline for DOGE if market conditions persist.
- Invalidation of the bearish thesis would arise from a hurdle above $0.092.
Dogecoin price has been struggling to break through a key resistance level, leaving both bulls about DOGE's future price movements. This piece identifies a possible bearish scenario for the notorious meme coin.
Dogecoin price shows bearish signals
Dogecoin's price is up 5% on the week, but there are barriers it needs to overcome to justify a bullish bias. Bulls have found resistance near the $0.10 barrier for almost six weeks, with prices failing to produce a candlestick close above the psychological level on the weekly timeframe.
Dogecoin price is currently auctioning at $0.087. The 21-day simple moving averages (SMA) and 8-day exponential moving averages (EMA) are hovering above the current trading price, which suggests that short-term traders may have a bearish bias.
The uptrend witnessed earlier in the winter, which rose Dogecoin from $0.06 to $0.12 within a week, never broke out on the Relative Strength Index (RSI). The RSI typically confirms true uptrends after they breach overbought conditions near 70. In Dogecoin's case, the RSI only rose towards the 65 area, a key level that bears enter when anticipating a downtrend.
Considering these factors, the bears have the upper hand, and they could be setting up for a move toward January's low at $0.069, which would lead to a 20% decline from Dogecoin's current market value.
DOGE/USDT 1-Day Chart
Invalidation of the bearish thesis would arise from a breach above the previous week's opening price of $0.092. A breach of this barrier could induce an upswing to challenge the RSI's suppressed pivot point. The bullish scenario would lead to a spike toward $0.1175, resulting in a 38% increase in market value.
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.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
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.