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- Dogecoin has had a tough month and a half, battered, wounded, and potentially eclipsed by its lesser competitors
- The presence of several weak findings across DOGE’s indicators was unsurprising. As the candles traded below their EMA Ribbons, the market received additional sell signals
- Longing DOGE at any price level, however, comes with a lot of dangers. Right now, making brief calls is the way to go
Dogecoin has had a tough month and a half, battered, wounded, and potentially eclipsed by its lesser competitors. After falling below critical levels in mid-August, the meme currency leader has lost over 45 percent of its value. Furthermore, a descending triangle collapse and a probable return to the lower trendline exposed DOGE to additional losses in the days ahead. The market would witness significant hemorrhaging if sellers are able to drive the coin below the demand zone of $0.155-$0.175. Despite the fact that Dogecoin offered a ray of optimism in August, the cryptocurrency’s price was quickly rejected beyond its 23.6 percent Fibonacci barrier.
After bulls failed to keep DOGE above $0.232, a descending triangle breakdown occurred, triggering another drop. Because a flashback was in force at the time of publication, the market appeared to be very vulnerable to a drop to $0.155-$0.175. This demand zone, in theory, would provide a platform for buyers to enter and respond to selling pressure. However, given the current dearth of retail interest in the market, the demand zone is unlikely to provide much assistance. If DOGE closes below this level, losses might reach $0.087 or possibly $0.065, before a positive reaction is seen. The presence of several weak findings across DOGE’s indicators was unsurprising. As the candles traded below their EMA Ribbons, the market received additional sell signals.
Over the last several days, the Ribbons have also flashed a few crossings, indicating the start of a bearish trend. In addition, the RSI and Awesome Oscillator went into negative territory. As a result, any possibilities of a bullish rebound are likely to be trumped by selling pressure. Dogecoin is projected to trend lower in the following weeks, based on the aforementioned causes. If losses are not contained between $0.155 and $0.175, levels like $0.087 and $0.065 may become a reality. For bulls, the aforementioned demand zone would be a good time to purchase DOGE. Longing DOGE at any price level, however, comes with a lot of dangers. Right now, making brief calls is the way to go.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
