• Dogecoin price on a knife’s edge, significant drop forecasted if buyers dry up.
  • Bullish fundamental data regarding the Dogecoin-funded DOGE-1 satellite fails to entice buying.
  • The threshold to keep Dogecoin from falling becomes increasingly difficult to overcome.

Dogecoin price has, like the majority of the cryptocurrency market, faced strong selling over the past few days. But unlike most altcoins, Dogecoin is positioned against an imminent price collapse.

Dogecoin price at risk of dropping to $0.18, could drop over 75% to $0.08

Dogecoin price is at a tipping point. A close at or below the $0.23 value area would likely create a fast move to the $0.18 level. From there, Dogecoin is at its greatest risk of a downside move.

A look at the 2021 Volume Profile shows an extremely thin traded range between $0.18 and $0.08 – almost no trading has occurred between those price levels. This is concerning because price treats those low volume levels like a vacuum. In other words, if Dogecoin price were to drop below $0.18, then it is likely to get ‘sucked’ into a vacuum of vacant volume to the next high volume node. The following high-volume node doesn’t appear until $0.08 - $0.09.

Despite the bullish news about an upcoming moon satellite entirely funded by Dogecoin and christened DOGE-1, there has been little interest to support Dogecoin price. This can be observed by looking at the oscillators. The Composite Index is at an angle where it will cross below its moving averages very soon. Additionally, the Relative Strength Index is rejected against the first overbought level in a bear market at 55.

DOGE/USDT Daily Ichimoku Chart

Dogecoin price has a difficult path to invalidate any near-term bearish outlook. Because of the Volume Profile, it is easier for Dogecoin to move lower than it is to move higher. Dogecoin also needs to close above all of its Ichimoku levels on the weekly chart to return to a clear bull market. That will only happen if Dogecoin can rally and close to at least $0.38.

 


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

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

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