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The market downturn since last week is driving investors to the edge. Opportunities are drying up across the board and the situation is not different with the leading meme coin DOGE. Several support areas have been lost, elevating the sellers’ presence and influence on Dogecoin price. Support at $0.075 must hold in the short term, otherwise, investors could be staring at a larger breakdown to $0.065.
Dogecoin price prediction: Will DOGE table further or bounce back?
The impact of the ongoing sell-off is having far-reaching effects on the performance of many cryptocurrencies, Dogecoin included. Despite the hyped-up rally from October backed by growing optimism for the approval of the first spot Bitcoin ETFs in the US, a sell-off clouded the actual event.
Investors felt let down, disappointed, and without motivation to buy the dips. A wobbly market structure casts a shadow over recovery, not just for Dogecoin but also for heavyweights like Bitcoin, Ethereum, XRP, and Solana.
While Dogecoin bulls aim to hold the yellow support band, a potential rebound faces a hurdle at the 200-day Exponential Moving Average (EMA) (purple). Breaching this could puncture support at $0.075 and worsen the technical outlook.
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Staying below the descending channel’s middle boundary could force DOGE to seek solace at lower levels like $0.07 and $0.065.
Further pressure comes from the bearish Moving Average Convergence Divergence (MACD) indicator, suggesting continued shorting by traders, with the hope of capitalizing on the potential drop to $0.065 where liquidity could come in handy to back the next breakout above $0.1.
The MACD spreads the bearish outlook into shorter time frames like the four-hour chart. However, a rebound is possible from the grey band support area, which could trigger a buy signal.
Traders should consider avoiding long positions in DOGE until steady support comes to the bulls’ rescue. While $0.075 is the biggest contender, Dogecoin price is not out of the woods yet.
A key entry position would be above $0.08 near the 50 EMA. Recovery to $0.1 could face delays and possibly rejection from the 200 EMA at $0.0843 — slightly below the 200 EMA. Conservative traders would be looking forward to DOGE breaking above resistance at $0.085 before going all-in and speculating on a potential rally past $0.1.
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