The sideways structure of Dogecoin continues to hold steady, but the looming threat of a bearish breakout is causing concern for investors. As sellers maintain the upper hand, many are left wondering if the popular cryptocurrency will be able to weather this storm or if a sharp decline is on the horizon.
Since late April, DOGE has been experiencing a period of price consolidation. Within this phase, its value has been fluctuating between $0.0763 and $0.0816, and it seems that this sideways pattern could continue if the current market conditions persist.
Will sellers push forward and cause a drop in DOGE's value, or will the buyers step in to turn the tables?
DOGE's Price Trends Bearish, With Possible Further Declines
Dogecoin's price on CoinGecko currently stands at $0.07473, indicating a decline of 3.0% over the last 24 hours and a decrease of 6.5% over the past seven days.
The dip in value may cause concern among investors, but it also presents an opportunity for those looking to buy low and potentially profit from any future price increases.
Dogecoin's recent price action has been indicating a bearish trend. It has remained below the moving averages, and has formed a bearish flag pattern, which emphasizes the sellers' leverage in the market.
This situation makes a bearish breakout highly possible, especially if Bitcoin falls below $28k, which could push DOGE towards the swing lows of $0.06250 that were last seen in March and January.
Moreover, if DOGE drops beyond this support level in Q1 2023, it may reach the bearish target of $0.05828. These figures suggest that the trend is currently negative, and investors should take note of the potential risks associated with investing in DOGE.
Outlook For Dogecoin In The Coming Weeks
Recent price movements in Dogecoin are consistent with a bearish market phase with further price drops possible in the near future.
However, it is essential to note that the cryptocurrency market is highly volatile, and any sudden positive or negative news could impact DOGE's value significantly.
DOGEUSD still on sluggish mode at 0.0747 on the daily chart at TradingView.com
Traders and investors should pay attention to critical support levels, such as the $0.06250 swing lows seen in March and January, as well as the bearish target of $0.05828 based on the flag pole height. If DOGE continues to trend downwards, it is possible that these levels could be tested.
On the other hand, if DOGE's price manages to break through the bearish flag pattern and rise above the moving averages, specifically the 50 EMA and 100 EMA, it could suggest a reversal of the current bearish trend.
Traders and investors should keep a close eye on the RSI and OBV, as well as any significant market news that could impact DOGE's price.
-Featured image from SmartAsset.com
Source: NewsBTC.com
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