Dogecoin (DOGE) has retreated heavily after pumping more than 1000% this past week
Dogecoin is trading around $0.032, nearly 5% down on the day and looks primed for further declines if bears seize control in the short term.
At the moment, DOGE appears to be struggling to maintain an uptrend started last week via an astronomical +1000% intraday price move. The pump that pushed DOGE prices from lows of $0.007 to over $0.088 last week may be fading rapidly, although bulls could yet rally alongside the rest of the crypto market.
Looking at the cryptocurrency market action over the past 24 hours, only Dogecoin with -4.60% is in the red among the top 25 cryptocurrencies by market cap.
Even so, DOGE has outperformed all the top 25 over the past seven days, with its price up 301% during this period.
Can Dogecoin price jolt into action and pump again?
DOGE has pumped before and will undoubtedly do again. However, unlike in the past, Dogecoin’s latest pump was primarily driven by WallStreetBets, the same group of amateur retail buyers that had sent the GameStop stock skyrocketing to send shivers across Wall Street.
While anything could happen short term, on-chain analysis platform Santiment said that social interest in Dogecoin (and XRP) has somewhat cooled off after their respective pumps. This suggests the coin might not repeat last week’s action so soon.
Likely, this could be down to interest turning to other cryptocurrencies like Ethereum (ETH) that has hit a new all-time high above $1,560. Yet DOGE remains a potential pump opportunity for investors, given that WallStreetBets and the #The DOGE army has shown it is possible.
David Gokhshtein, the CEO of PAC coin appears to think there’s more coming, with an acknowledgement of the power of Dogecoin’s retail buyers.
“DOGE army, if I wasn’t the CEO of $PAC I would consider your offer”, he tweeted.
DOGE/USD price outlook
DOGE price dropped to lows of $0.022 after its mammoth pump, but bulls managed to push higher once more to settle above $0.030.
The Bollinger Bands on the 4-hour chart marks the short term price range of DOGE/USD. The main level to watch is the middle curve at $0.033.
The altcoin is trading just below the critical resistance level marked by the middle curve. This is an area that has capped price action over the past few sessions.
A breakout above $0.033 could, therefore, open up a potential retest of $0.041. The level has the upper limit of the volatility indicator offering a huge upside barrier. However, with trading volume shrinking over the past several hours, it is possible a new spike in buy-side pressure could catapult DOGE higher.
On the other hand, a bearish bounce off the middle curve could see bulls seek refuge at the robust support zone near $0.030. The 50-SMA provides another anchor at $0.028, but dipping below this price level may invite extra sell-off pressure to lows of $0.024.