Dogecoin DOGE price over the previous nine trading days fluctuated around the 50-day simple moving average, complicating a definitive outlook for Dogecoin. During that period, the digital asset formed a symmetrical triangle pattern level that resolved to the downside yesterday, confirming a bearish turn.
Dogecoin price declined about 75% from the May 8 high at a price of $0.760 to the May 19 low at $0.195, putting it on the higher side of the range for declines in the cryptocurrency complex. However, the Dogecoin did achieve a 130% bounce off the May 19 low into the May 20 high, closing the DOGE price back above the 50-day SMA, a level that has been instructive for the price action over the last nine days.
The decline below the triangle’s lower trend line level yesterday has positioned Dogecoin price to test the descending channel’s lower boundary at a price of $0.177. The projected DOGE decline will discover a support level at the confluence of the May 23 low at a price of $0.246, with the channel’s midline at $0.242. Further support level emerges at the May 19 low at $0.195.
A flash style of a crash, similar to May 19, could expose the Dogecoin price to a test of the 61.8% Fibonacci extension level at $0.147 of the Dogecoin rally beginning April 1, representing a 50% decline.
Additional selling pressure will strike the strategically important 200-day SMA at $0.112 and potentially the January 29 high at a price of $0.100. It would be the first test of the moving average since December 2021.
To entertain a positive outlook, the Dogecoin price needs a daily close above the channel’s upper boundary at a price of $0.335 and the 50-day SMA at $0.362. No further imposing resistance level exists until the 50% retracement of the May correction at a price of $0.477 and then the 61.8% retracement at $0.544.
MaybeIf Stanley Druckenmiller is correct, and the Dogecoin story is a “manifestation of the craziest monetary policy in history.” Or maybe, it is a social media story orchestrated by Musk and Mark Cuban and inspired by the community lead Gamestop events that consumed the stock market in early 2021. Whatever the reasons, the current DOGE price chart has been an enigma wrapped in a riddle.
Ethereum price struggles to separate from broader crypto weakness
0 Comments