Dogecoin Can Regain Losses If DOGE Extricates Itself From This Level
Dogecoin, a dog-themed cryptocurrency released in December 2013, is caught in an extended bearish momentum as it continues to struggle to trim its losses and regain its bullish run.
The meme crypto that rose to popularity – thanks to the billionaire and self-proclaimed “Dogefather” Elon Musk’s promotion – attained its all-time high on May 8, 2021 when it peaked at $0.73.
But DOGE has now lost 91.8% of that value. At press time, according to tracking from Coingecko, the altcoin is trading at $0.060.
The nightmare started for the Shiba Inu-inspired token in December last year when it plummeted below the crucial $0.173 marker.
Since then, the digital asset has been struggling, recording new lows to date and matching its yearly lows during the month of June and September.
Analyzing DOGE Price Movement
The recent and ongoing bear market put dogecoin below is 20 and 50 Exponential Moving Average (EMA) which is a metric used to measure trend direction over a period of time.
DOGE bulls are being kept under control by Dogecoin’s trendline reversal and have failed to sustain the $0.0607 high liquidity zone over the last days.
If this results in a pull below the $0.057 marker, the altcoin will be in an extended bullish movement highlighted by the testing of $0.048-$0.052 range in preparation for a mini-bull run.
In reverse, if Dogecoin sustains price above the $0.057 marker, it can test the $0.062 resistance zone. That simplifies the thesis for the meme crypto’s price trend.
Dogecoin can regain its losses if DOGE can extricate itself and move above the $0.057 marker.
A Word Of Caution Before Accumulating Dogecoin
The current price of Dogecoin is very appealing to investors who are looking to shore up their holdings of the crypto.
But caution should be exercised in considering accumulating large volume of DOGE as a breakdown of the $0.0471 support is likely to result in steep fall that will act as continuance of the current bear movement.
If such a scenario happens, Dogecoin could be looking at a 42% decline, plummeting all the way to a trading price of $0.0267.
Trouble doesn’t stop there for the altcoin, as it could still go lower, losing 69$ of its value to change hands at $0.0140.
Investors are then advised to pay close attention to the movement of the digital asset’s price and to keep a vigilant eye on the crucial support levels for the crypto.Source