- Dogecoin price prints two bearish candles on Saturday after climbing to $0.0684.
- The buildup of overhead pressure at $0.0688 paints a grim picture for DOGE ahead of the new week.
- Traders should consider new entries at the 200-day SMA on the four-hour chart to long Dogecoin price.
Dogecoin price is at a critical juncture in the wake of a 22% jump in value this week. Initially, the move from support at $0.0560 saw Doge price respect a descending channel’s lower boundary.
A break above the channel defied negative economic news from the United States and the United Kingdom to close the gap to $0.0684. The largest meme token must consolidate gains at a higher level to secure a continued rally to $0.1000.
Has Dogecoin price exhausted its upside momentum?
Dogecoin price is exchanging hands at $0.0654 while bulls double down on their efforts to prevent erasing the progress made over the last few days. The Moving Average Convergence Divergence (MACD) affirms that buyers currently have the upper hand. However, further movement north would be restricted due to the decreasing trading volume.
DOGE/USD four-hour chart
Dogecoin price needs to make a four-hour to a daily close above the seller congestion at $0.0600. Otherwise, investors should start to acclimatize to an imminent pullback. The 200-day (purple) Simple Moving Average (SMA) is one of the key targets on the downside – the second being the 50-day SMA (red) at $0.0600.
It is preferable for Dogecoin price to first gather more liquidity before entering the second phase of its quest to reclaim the $0.1000 level. The IOMAP model reveals the presence of voluminous selling pressure between $0.0678 and $0.0698. Approximately 86,000 addresses previously bought 42.54 billion tokens in the range. It will be challenging for Dogecoin price to navigate through this hostile area because investors might consider offloading their bags at their respective breakeven points.
-637996095401845160.png)
Dogecoin IOMAP model
On the other hand, the on-chain reveals the lack of vital support areas, which means the gains accrued this week are in danger of being wiped out. This sentiment also calls for caution from traders – consider locking in profits when you can, remembering the bear market is not over yet.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
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.