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The sideways structure of Dogecoin continues to be stable, but the looming threat of a bearish breakout is causing concern among investors. With sellers holding the edge, many are wondering if the popular cryptocurrency will be able to weather this storm or if a sharp drop is on the horizon.
Since the end of April, DOGE has been going through a period of price consolidation. At this stage, its value has fluctuated between $0.0763 and $0.0816, and it seems that this sideways pattern may continue if current market conditions continue.
Will the sellers move forward and cause the value of DOGE to drop, or will the buyers step in to turn the tide?
DOGE price trends are bearish, with further decline possible
The price of Dogecoin on CoinGecko is currently $0.07473, which is down 3.0% in the last 24 hours and down 6.5% in the last seven days.
A drop in value may cause anxiety for investors, but it also provides an opportunity for those looking to buy low and potentially profit from any future price increase.
The recent price action of Dogecoin indicates a bearish trend. It remained below the moving averages and formed a bearish flag pattern, highlighting the influence of sellers in the market.
This situation makes a bearish breakout highly likely, especially if Bitcoin drops below $28k, which could push DOGE towards the $0.06250 swing lows last seen in March and January.
Moreover, if DOGE drops below this support level in the first quarter of 2023, it could reach the bearish target of $0.05828. These figures suggest that the trend is currently negative and investors should be aware of the potential risks associated with investing in DOGE.
Dogecoin outlook in the coming weeks
The recent price movements of Dogecoin are in line with the bearish phase of the market and further price drops are possible in the near future.
However, it is important to note that the cryptocurrency market is very volatile and any sudden positive or negative news could significantly affect the value of DOGE.
DOGEUSD is still in sluggish mode at 0.0747 on the daily TradingView.com chart.
Traders and investors should look out for critical support levels such as the $0.06250 swing lows seen in March and January, and the $0.05828 bearish target based on flagpole height. If DOGE continues its downward trend, it is possible that these levels could be tested.
On the other hand, if the DOGE price manages to break the bearish flag pattern and rise above the moving averages, especially the 50 EMA and 100 EMA, this could signal a reversal of the current bearish trend.
Traders and investors should keep a close eye on the RSI and OBV as well as any major market news that could affect the price of DOGE.
– Featured image from SmartAsset.com