When the Dogecoin price cleared its downtrend on Monday, it should have led to a sustained rally. However, DOGE is turning lower, which isn’t a good sign.
Dogecoin is last trading at $25.04, lower by $0.0130, (-4.96%).
DOGE has slipped down the rankings a little recently. However, the worlds favourite meme-coin is still the 6th largest cryptocurrency and has a market cap of around $32.5 billion.
Last week, It was looking like DOGE needed to be put out of its misery. After Bitcoin was slammed below $30,000, the Dogecoin price was pushed under $0.2000 and traded as low as $0.1600 before finding a floor.
However, the price has staged what could be considered a remarkable recovery. By last Friday, DOGE had gained close to 90% from the low of Tuesday’s collapse.
Furthermore, the rally lifted DOGE above the $0.2500 resistance of a descending trend line.
So this should be positive. However, the price has started to roll over and presently is around 15% below Fridays $0.2914 peak.
DOGE price forecast
The Daily chart shows us that the Dogecoin price remains above the trend line resistance.
The trend line begins at the 8th of May high of $0.7600 and lines up with a series of highs from earlier this month. After breaking above the trend, DOGE did retest the line, which is now considered a support level. The subsequent test was successful, and the Dogecoin price bounced.
Therefore this validates the significance of the support.
However, the rally again stalled around $0.2800.
The $0.2800 resistance level is reinforced by several lows from the end of May, all around the same price. On that basis, I would consider this to be an important resistance. Should DOGE punch through this area, it has room to continue towards $0.4600.
That being said, the current momentum is clearly negative.
The downtrend support is now seen at $0.1870, about 23% below the last traded price. Furthermore, that will be lower every day we move forward.
A break below this line would pass the baton to the bears and likely lead to a much steeper decline.
So, for now, DOGE maintains a slightly bullish bias. Of course, that outlook will improve immeasurably above $0.2800.
And turns sharply negative below $0.1870.
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Dogecoin price chart (Daily)
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