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Dogecoin has lost 15% in the week amid a bear market
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The lack of positive fundamentals has been ailing the meme cryptocurrency
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DOGE will confirm a bullish reversal if the candlestick closes above $0.09
If you have been eyeing buying Dogecoin (DOGE/USD), you are probably not sure whether to anymore. A weekly loss of 15% makes DOGE the biggest loser among the top 10 ranked cryptocurrencies. It could be a little more troubling, especially since DOGE has fallen below $0.09. It is a crucial support that bulls could have been eyeing to buy DOGE on a retracement. But we believe DOGE is not bearish yet.
Fundamentally, we remain sceptical of DOGE as the meme token lacks key bullish triggers. Initially, DOGE was gaining on prospects of an announcement as Twitter’s payment medium. The speculations have since cooled down as Elon Musk is still yet to give an official indication or throw a joke around the topic. The large decline in DOGE’s price reflects investors’ potentially exiting positions on the lack of positive cryptocurrency news. With the bear market continuing, it makes sense to expect DOGE to decline too.
Technical analysis of DOGE as price slides below support
Turning to the technical side, DOGE is trading at a make-or-break level. The MACD shows a weak and bearish momentum, although the indicator remains above the neutral zone.
Despite breaking below the $0.09 support, buyers resist a drop below $0.084. DOGE can confirm a bullish reversal signal through a pin bar if the daily candlestick closes above $0.09.
Is DOGE about to become bullish?
From the technical analysis, Dogecoin can go either way. A bullish pin bar at the $0.09 support could allow bulls to take control of the cryptocurrency and push it back to $0.11.
On the flip side, if the daily candlestick closes below, we need further price action. Bears may take control in the bear scenario and take DOGE lower. The price of around $0.07 would remain in sight.