Dogecoin Price Prediction: 20% drop shows DOGE faces an uphill battle

The Dogecoin price surged 50% in the first week of September as dog-themed meme coins burst back onto the front pages in emphatic style. Inspired by Shiba Inu Coin’s (SHIB) ridiculous 600% rally, Dogecoin (DOGE) jumped from $0.192 to almost $0.30 between September 30th and October 7th, briefly piercing trend resistance. However, DOGE has been unable to hold the gains and has lost 20% since. As a result, the price has slipped below the key moving averages and looks likely to test trend support.

Despite the recent slide, Dogecoin remains the 10th-largest cryptocurrency. At the time of writing, DOGE has a market cap of $30.7 billion, over $14b more than 11th-ranked Uniswap (UNI). And whilst 10th place appears secure for the foreseeable future, the Dogecoin price does look vulnerable to more downside. DOGE’s inability to break out on the upside is particularly concerning, given Bitcoin’s (BTC) impressive run to a five-month high of $56,500.

DOGE Price Forecast

The daily chart shows that DOGE is trending sideways in a narrowing wedge formation. The descending top edge of the wedge is seen at $0.268 and was the point at which last weeks rally failed. The 100-day moving average (DMA) at $0.2401, the 50 at $0.2491 and the 200 at $0.2675 add to the significant overhead resistance. Notably, the 50 DMA is below the 200 DMA, which is a bearish signal. As long as the Dogecoin price is below the major moving averages and the trend line, the outlook is bearish.

The initial downside target is the rising trend line at $0.1861, around 20% below the last trade of $0.2370. However, the lack of trading activity suggests that DOGE has fallen off the radar. On that basis, if the price starts to break down through trend support, it may not meet immediate dip-buying. In that event, I can’t rule out a trip to $0.1000. The bearish view remains as long as Dogecoin stays below the significant overhead resistance. Therefore, a close above $0.268 invalidates the pessimistic call.

Dogecoin Price Chart (Daily)

DOgecoin price DOGE

For more market insights, follow Elliott on Twitter.