Dogecoin (DOGE) shows weakness as bears restrict action below $0.055

Dogecoin (DOGE) shows weakness as bears restrict action below $0.055

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An image of DOGE cryptocurrency symbol

DOGE price is vulnerable to a fresh downside if bears breach $0.050

The Dogecoin price has slid nearly 8% over the past week to see it trade below $0.055. The popular meme-coin remains among the top 20 cryptocurrencies by market cap but could lose its spot if its value against the US dollar continues to see downward action.

At the time of writing, Dogecoin’s price was $0.053 and had dipped 2.2% on the day. Its market cap stood at $6.8 billion, ranking it 19th on CoinMarketCap ahead of VeChain that has a market cap of $5.8 billion.

Dogecoin price outlook

Dogecoin’s price has been range-bound over the last several days, with recent action seeing bears battle for control below two key support levels.

DOGE/USD is trading below the 20-day exponential moving average. Crucially, the cryptocurrency’s price has broken below the middle line of a horizontal parallel channel that has capped price action between $0.065 and $0.047.

DOGE/USD daily chart. Source: TradingView

The technical picture for DOGE/USD suggests sellers are likely to seek prices near the channel’s lower range.

The MACD remains within the negative zone after a bearish crossover, while the RSI is below 50 to suggest immediate advantage is with the bears.

There’s also a bearish trend line formation that currently caps DOGE prices near the channel’s middle line at $0.055 and the 20-day EMA at $0.054.

If prices turn lower, sellers will likely push DOGE towards the major support at the $0.051 level. This is a critical support area that could see bulls stage a swift rebound. However, if that fails, the coin’s price could correct to the support line of the channel at $0.047.

In case of further losses, levels to watch for would be $0.041, $0.035 and $0.028.

On the upside, buyers need to be aggressive and push for further gains above the 20-day EMA ($0.054). A bullish flip is likely for DOGE/USD if it makes a clear break above the bearish trend line and the middle line of the horizontal channel.

Keeping DOGE above $0.055 might call for increased buying, which could then see bulls seek $0.065 and then $0.080.