•  Dogecoin price action is stuck in a wide-ranging pennant that is well-respected on both the downside and upside.
  • DOGE price is starting to converge toward the bearish side as price action slips below $0.26.
  • A break of the green ascending trend line, and thus a break out of the pennant, could open DOGE to a 30% loss.

Dogecoin (DOGE) price action is starting to fall in favor of the bears after bulls got rejected on any further gains on October 6 at $0.29. As the pennant begins to consolidate, some bearish signs start to form and spell grim perspectives for the bulls. A break of the green ascending trend line could open up losses toward $0.19.

Dogecoin price is under bearish pressure to break the pennant to the downside

Dogecoin price action has been in a bull run with a peak on October 6, where bulls failed to break above $0.29 and the monthly R1. That rejection saw quite a lot of profit-taking in long positions and made price action in DOGE fade to the downside. Although technically still in a short-term uptrend, the longer-term downtrend looks to become a reality again for the bulls.

DOGE price rejection of $0.29,  where bulls got a very abrupt stop to the upside on October 7, made bears stream in to start taking out bulls in Dogecoin price action. The level around $0.26 not only held historical importance, but with both the 55-day and 200-day Simple Moving Averages (SMAs) working as resistance, bulls faced a threesome of refusals on their attempt to retest $0.29. To make matters even worse, the 55-day broke below the 200-day SMA and could be the start of a Death Cross, which bears love to use as a reason to go short Dogecoin.


DOGE/USD daily chart
 

DOGE/USD daily chart

With bears clearly in control in Dogecoin price action, expect a retest of the green ascending trend line in the coming days. A break below would first meet support at $0.19, going back to September 21, with a double floor and the S1 support level from September. A leg lower would make bears target $0.16, with the low from July 20 and the S1 support level as profit-taking points . 

In case bulls can take the upper hand in DOGE price with the help of some favorable tailwinds, expect a break back above $0.26, followed by a retest of support on that same level before bulls then charge in full force to break the red descending trend line and target $0.29 for the retest of a double-top formation. 

 


 


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


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