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Highlights
- Dogecoin price holds $0.1 support but upside movement capped under $0.11 resistance.
- ‘MyDoge’ DOGE wallet founder Jordan Jefferson teases upcoming game on the Dogecoin network.
- A death cross pattern significantly increases downside risk with DOGE likely to retest $0.9 and $0.08 levels.
- If validated, a falling wedge pattern breakout could boost Dogecoin closer to $0.2.
Dogecoin (DOGE) price reflex recovery from Monday’s drastic crash seems to be struggling to maintain momentum despite signals that the network could soon launch a Web3 gaming community.
Gaming is Coming on Dogecoin
According to a post by Jordan Jefferson, the founder and CEO of the Dogecoin wallet MyDoge, gaming will soon launch on the largest meme coin network. In a surprise move, Shiba Inu’s lead developer, Shytoshi Kusama, took a swipe at the upcoming Web3 game, drawing attention to the SHIB ecosystem’s “Shiba Eternity” game. However, Jefferson argued that “both communities can battle in this game across both chains.”
**Laughs in Shiba Eternity** https://t.co/LVRpCAhIrH
— Shytoshi Kusama™ (@ShytoshiKusama) August 9, 2024
Dogecoin’s move to tap into web3 gaming could increase the token’s utility despite Kusama ‘laughing’ at the idea. Like Shiba Eternity, the new game on the network will increase demand for DOGE price, which has been struggling to stay above the recently reclaimed $0.1 support.
Dogecoin Price Risks a 23% Drawdown
Dogecoin price holds slightly above short-term support at $0.1. This follows an upswing from $0.08 support and a rejection at $0.108. Bulls intend to push DOGE to reach the next crucial target of $0.2, however, the presence of a death cross pattern in the daily timeframe, suggests downside risks are still apparent and cannot be ignored.
Note that a death cross pattern occurs when a short-term moving average, like the 50-day EMA in Dogecoin’s case, crosses below a long-term one, such as the 200-day EMA, pointing to potential bearishness.
Based on this Dogecoin price forecast, traders may read this as a sell signal or tighten stop-loss orders as long as they can validate the bearish thesis using other indicators.
The Moving Average Convergence Divergence (MACD) has not recovered from the current sell signal, which could be weighing on the Dogecoin price and holding it back.
As traders prepare to brace for the impact of the death cross, they should be aware of the falling wedge in the daily time range. This bullish reversal pattern formed when the Dogecoin price corrected from its $0.2288 peak in March, touching three higher lows and three lower lows.
Linking these price points using trend lines forms a falling wedge, which could blast DOGE 58% higher to close the gap to $0.2. The target is determined by measuring the distance between the first swing high and the first swing low, which is then added above the breakout point. The stop loss would be placed slightly below the breakout point for risk management.
Frequently Asked Questions (FAQs)
1. How did Shiba Inu’s lead developer, Shytoshi Kusama, react to Dogecoin’s gaming plans?
2. How will web3 gaming impact DOGE price?
3. Will Dogecoin price drop 23% to $0.08?
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