DOGE has been trading sideways for weeks. However, the Dogecoin price has reached an important crossroads and will soon breakout.
Dogecoin is last trading at $0.2903, lower by $0.0008 (-0.32%).
In a similar fashion to most cryptocurrencies, Dogecoin has spent the last month on the road to nowhere. The hype surrounding digital assets earlier in the year has long since disappeared.
The Dogecoin price was a main beneficiary of the gargantuan amount of capital that flowed into cryptos in the first 4 months of 2021.
The Dog-themed coin that started as a joke, gained 18,000% in a wave of speculative, celebrity-endorsed hubris,
By mid-April, DOGE had flipped most established projects and approached a $100 billion valuation. At its $0.7600 peak, Dogecoin was the 4th largest crypto asset on the planet and worth more than logistics giant FedEx.
Of course, this Fed-induced, social-media fuelled tulip mania on steroids was unsustainable. May’s crash wiped out over $1 trillion in value from the cryptocurrency market.
The Dogecoin price was not spared, losing over $60 billion from its market cap over the last month.
DOGE Technical Outlook
The daily chart shows that DOGE is wedged in a descending triangle pattern. This is probably not a good sign for the bulls.
A horizontal line of support from the 29th of May low can be seen at $0.2800, and should be considered the last line of defense for DOGE.
A break of this support could fast-track the price south, targeting the 19th of May low at $0.2222.
Conversely, a descending line from the 2nd of June high $0.4480 is a key resistance level. This trend sits just above the current price, at $0.2980. A break above this trend could extend to $0.3380.
That being said, the downside is looking much more probable at the moment. However, the price did manage a bounce from the support this morning. But that is likely due to DOGE experiencing short-term oversold conditions.
Nonetheless, a second visit may not prove so fruitful for the bulls.
Don’t miss a beat! Follow us on Telegram and Twitter.
Dogecoin price chart (daily)
Follow Elliott on Twitter.