- Despite bouncing 30% from Saturday's low, the Dogecoin price failed to recover its long-term uptrend, suggesting more downside this week.
Despite bouncing 40% from Saturday’s low, the Dogecoin price failed to recover its long-term uptrend, suggesting more downside this week.
Dogecoin (DOGE) is slightly softer at $0.1696 (-1.17%) in early nervous Asian trading on Monday. Even after the knee-jerk bounce higher from a nine-month low of $0.122, DOGE is down 20% in the last seven days and is no longer a top-ten cryptocurrency. Furthermore, at the current price, the meme coin has lost around $73 billion in market cap from May’s $95 billion top, despite a $4billion jump in the last two days. Worse still, the Dogecoin price looks vulnerable to a retest of Saturday’s low unless it recaptures its uptrend.
DOGE Price Forecast
The daily chart shows that DOGE has broken below long-term trend support (now resistance) at $0.1920. And the bearish momentum should continue as long as the overhead resistance is intact. A logical downside target is $0.1220, whilst a more profound correction could extend towards $0.1004 (January 2021 high).
However, a close above trend resistance would flip the outlook from bearish to bullish. In that event, DOGE should advance to the 100 and 200-DMA’s at $0.1419 and $0.2550, respectively.
On balance, I expect the unfavourable scenario to play out, considering the damage to risk sentiment caused by the recent crash. On that basis, I am bearish on Dogecoin with a $0.1000 price target. However, a close above trend resistance at $0.1920 improves the technical outlook, invalidating the pessimistic view,
Dogecoin Price Chart (Daily)
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