- Dogecoin price action is pushing against necessary support.
- DOGE undergoes pressure from bears that still could cover some 15% of ground to the downside.
- Global markets turmoil squeezes bulls out of their positions and could bring price action to $0.13.
Dogecoin (DOGE) is under siege by bears as price action books a fourth consecutive day of losses. DOGE bulls are being pushed up against support at $0.16, which goes back to July 20. If global markets sentiment does not change, more downside is in the pipeline for DOGE, with a dip towards $0.13.
DOGE bears have room to go with no restraints
Dogecoin price cannot go against the flow of current global market sentiment as stock markets are one-directional lower, and bond markets are experiencing a similar phenomenon. Markets look to be gripped by selling pressure and the party’s over, as everyone prepares for the FED to start its hiking cycle in March at the earliest. This depressive mood is further fueled by geopolitical tensions persisting as headwinds.
These elements are reflected in DOGE’s price action, which is slipping below the monthly pivot at $0.17 and pushing bulls against the wall at $0.16. A break lower would mean an accelerated sell-off towards possibly $0.13, which is a longer-term support handle. By then, the Relative Strength Index (RSI) will be nearing or trading in oversold territory. That should present a window of opportunity for investors to engage and pick up Dogecoin at a discount with some uncertainties fading in the markets as a headwind.
DOGE/USD daily chart
As said in the opening part of the article, it is not DOGE as a sole asset, but more global market sentiment weighing and being reflected in the price action. A fade or turn in sentiment would be translated into a positive return for investors, and see DOGE price hitting back at $0.19, with even a possible pop towards $0.22, with the 200-day Simple Moving Average (SMA) acting as a cap. With that move, gains could amount to 40%, with more upside potential towards $0.26.
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