Dogecoin price shows a sequence of classical bearish price action signals. Key levels have been defined.
Dogecoin price is in trouble
Dogecoin price is in an unfortunate situation as the bulls have lost support at the $0.06 level. Given that the 8-day exponential and 21-day simple moving averages are expected to cross in what is known as a “bearish death cross”, the notorious meme coin will likely fall to new lows in the coming weeks.
Dogecoin’s price is currently down 10% since the start, bringing the yearly decline to 90% since all-time highs at $0.70. It is important to note that the present decrease is taking place on low volume, indicating that either the downtrend is waning or the bulls have lost all enthusiasm for the current discounted price.
Dogecoin’s price trades at $0.059. After slipping into oversold territory during the most recent sell-off, the Relative Strength Index had a significant rejection at the level where sidelined bears were expected to jump into the market. The indicator adds fuel to the enflamed meme coin’s situation and should likely provide confidence for bears not to release their shorts.
Considering all these elements, a 10% decline seems like an acceptable goal. A sweep-the-lows event with the June 18 swing low at $0.049 as the target could be imminent if the mid-$0.05 level fails to act as support. If DOGE heads into price discovery past $0.049, all liquidity levels could be in jeopardy, including the $0.01 levels untouched since January 2021.
