-
Dogecoin price has joined other cryptocurrencies in a strong sell-off.
-
Technical analysis shows that the coin will continue falling.
Dogecoin price was not left behind in the recent cryptocurrency sell-off. The coin dropped to a low of $0.067, the lowest level since July 18th. It has dropped by more than 20% from the highest level in July and over 58% from the highest level in 2022. Other coins like Bitcoin, Litecoin, and Hedera Hashgraph have also dipped.
Dogecoin price forecast (daily chart)
The daily chart shows that the DOGE price has been in a strong bearish trend after peaking at $0.1587 in October last year. It has underperformed the crypto market, partly because of the strong growth of alternative meme coins like Bone Shibaswap, Pepe, and Bad Idea.
The coin has remained below the descending trendline, which connects the highest levels since December last year. At the same time, the coin has moved below the 25-day and 50-day exponential moving averages (EMA).
Dogecoin price is hovering slightly above the important support level at $0.065, the lowest point in March and December last year. The Relative Strength Index (RSI) has moved below the neutral point at 50 while the Stochastic Oscillator has moved below the oversold level.
Therefore, DOGE price will likely have a bearish breakout in the next few days. If this happens, the next level to watch will be at $0.055, the lowest level on June 10th 2023 and September last year. The stop-loss of this trade is at $0.080, the descending trendline.
DOGE price analysis (4H chart)
Turning to the four-hour chart, DOGE price has been in a downtrend in the past few weeks. It has managed to move below the ascending channel shown in black. It dropped below that level on August 2nd and then retested it on August 5th. In technical analysis, a break and retest pattern is usually a sign of a bearish continuation.
Dogecoin has also retreated below the 25-period and 50-period moving averages while the Relative Strength Index has moved below the oversold level. Therefore, the outlook of the token is bearish, with the next level to watch will be at $0.063.
