Dogecoin’s sideways structure remains stable, but the imminent threat of a bearish breakout worries investors. As sellers hold the upper hand, many are wondering if the popular cryptocurrency will be able to weather this storm or if a sharp crash is in the offing.
Since the end of 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 looks like this sideways pattern could continue if current market conditions persist.
Will sellers move in and cause DOGE’s value to drop, or will buyers step in to turn the tables?
DOGE Price Trends are Bearish, with Further Falls Possible
Dogecoin price in CoinGecko it currently sits at $0.07473, indicating a 3.0% decline in the past 24 hours and a 6.5% decline in the past seven days.
The drop in value may cause concern among investors, but it also presents an opportunity for those looking to buy low and potentially benefit from any future price increases.
Dogecoin recent price action has been indicating a downtrend. It has held below the moving averages and has formed a bear flag pattern, which emphasizes the leverage of the sellers in the market.
This situation makes a bearish breakout very possible, especially if Bitcoin falls below $28k, which could push DOGE towards the lows of $0.06250 last seen in March and January.
Furthermore, if DOGE falls beyond this support level in Q1 2023, it can hit the downside 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
The recent price movements in Dogecoin are consistent with a bear market phase with additional price declines possible in the near future.
However, it is essential to note that the cryptocurrency market is very volatile and any sudden positive or negative news could significantly affect the value of DOGE.
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 reversal of $0.06250 minimums observed in March and January, as well as the downside target of $0.05828 based on the height of the flagpole. If DOGE continues to trend down, it is possible that these levels could be tested.
On the other hand, if the DOGE price manages to break out of the bearish flag pattern and break above the moving averages, specifically the 50 EMA and 100 EMA, it could suggest a reversal of the current downtrend.
Traders and investors should keep an eye on the RSI and OBV, as well as any major market news that may affect the DOGE price.
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