Dogecoin price slips as traders wonder why rally fails to rip

Dogecoin price seems stuck sideways to lower, whereas peers like Shiba Inu are set to boom.
DOGE price action on the ropes as traders select where they allocate their money.
Expect a possible further decline toward $0.08 in search of support before the catch-up happens.

Dogecoin (DOGE) price action slipped over 1.5% intraday on Wednesday, whereas overall most cryptocurrencies are up for the day. Helped by a weaker US Dollar and the fact that last night’s events in Poland got degraded to a mere accident, traders are judging whether to stay in their positions. As for DOGE, a sideways to lower pattern is becoming clear. As long as the low of Tuesday holds, all is fine. Should it break, expect a short correction.

DOGE price could act as a canary in the coal mine

Dogecoin price is tumbling, whereas most cryptocurrencies look immune to overnight events. Although the VIX fear gauge dropped, and the EURUSD is back above 1.04, not all traders are convinced of the played-down event from last night. Poland and NATO already said it was an accident, but traders are rethinking whether any rally will be easy.

DOGE price thus sees little interest from traders in putting big chunks of money into it as rallies could easily implode for a few hours should similar events like Tuesday evening repeat themselves. Expect the DOGE price to drop toward the red descending trend line and search for support near $0.08. Should that level be penetrated, support comes in around $0.07, with both the 55-day and 200-day Simple Moving Averages (SMA) coming in as supportive variables.

DOGE/USD daily chart

Should DOGE's price finally catch up with its peers and see that tailwind coming in from US Dollar weakness, a bullish breakout is granted toward $0.0944. Maybe even a little excursion to test $0.10 to the upside will occur. Should the bullish sentiment continue by next week, the next hurdles are $0.11 and $0.1137, with the monthly pivot coming into play.

Share: Cryptos feed

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.