- Dogecoin price is on the back foot along with global markets and sees its attempts to pop higher, cut short.
- DOGE price action is looking to the downside under several bearish elements.
- Expect more weakness to come once peace talks fail and violence flares up again in Ukraine.
Dogecoin (DOGE) has proven it is susceptible to the events on the world stage following the news on Sunday that Russia would be cut off from SWIFT. This put DOGE price action on the backfoot. In the downturn, $16.98 is set to be breached, and a daily close below would spell more pain to come for DOGE bulls. A dip towards $10.35 would not be impossible if the situation deteriorates again and Putin is set to use nuclear weapons.
Dogecoin could implode 40% to $10 if the situation in Ukraine deteriorates
Dogecoin investors are not enjoying their entry from past Thursday or Friday when risk-on looked to be back leading to expectations Dogecoin might break its downtrend. That all looked to be lost on Sunday after news came in that the EU was in agreement to cut off Russia from financial markets. With that move, Dogecoin dropped 6% in total.
The situation is still premature and far from over and DOGE price action could remain under pressure as the 55-day Simple Moving Average is still in a death cross with the 200-day SMA, the Relative Strength Index still has room to go before being oversold, and – since Sunday – a red descending trendline has been formed that will exert further downside pressure. There are plenty of bearish signals that will be hard to overcome and could see DOGE first hit $14 before tanking further towards $10.35. By then, the RSI will be in oversold territory, limiting any further downside moves for the time being.
Polkadot/USD daily chart
White smoke could still come at any time if some official can broker a deal between both parties, which would ripple into global markets as a giant sigh of relief. In such a scenario, DOGE price action would pop above the red ascending trend line and look for a test towards $20.00, or near historical resistance at $20.50. Around that level, the 55-day SMA will also come in, forming a double cap on price action. Should bulls be able to pierce through that level and even obtain a daily close above, get set for plenty of more upside potential.
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
Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off
Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration
In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.
Bitcoin dives 3% from its recent all-time high, is this the cycle top?
Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.
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.