Dogecoin Faces Downward Pressure – Will DOGE Bulls Avert A Further Slide?

Christian Encila

2 years ago

3 mins read

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Dogecoin (DOGE) is currently facing a critical juncture in its price movement. The DOGE price is teetering above the last horizontal support level before a potential substantial decline. In order to avoid a steep fall, it is imperative for Dogecoin to muster a decisive bounce at its current level.

However, this task may prove to be challenging as a persistent downtrend, marked by a descending trendline, has been undermining the efforts of buyers to establish a sustained bullish recovery for nearly two months.

Will Dogecoin be able to break free from this downward pressure and embark on a new upward trajectory?

A Crucial Juncture For DOGE Price

Analyzing the technical aspects of Dogecoin’s price movement on the weekly time frame reveals a significant decrease at the beginning of June, ultimately reaching the $0.06 horizontal support area. This particular zone holds immense importance as it has remained intact for an impressive 378-day period.

Source: TradingView

Whether the price manages to bounce back above this critical level or succumbs to a breakdown could potentially dictate the future trend for DOGE.

At present, according to CoinGecko, the value of Dogecoin stands at $0.063. However, recent market conditions have not been favorable, leading to a slump in DOGE’s price.

DOGE price at $0.063. Source: Coingecko

Over the course of the past 24 hours alone, Dogecoin witnessed a notable 2.0% decrease. This downward trend has persisted over the past week, with DOGE experiencing an overall decline of 7.2%.

Considering these developments, the current state of Dogecoin’s price raises important questions about its trajectory moving forward.

Potential For Bullish Breakout

Should the overall market sentiment shift back towards recovery, there is a possibility of Dogecoin’s price experiencing a bullish breakout from the overhead resistance it currently faces.

Such a breakout has the potential to alter traders’ mindset, transitioning from actively selling during price rallies to adopting a strategy of buying on price dips. This shift in sentiment could have a significant impact on the market dynamics surrounding Dogecoin.

DOGE market cap currently at $8.83 billion. Chart: TradingView.com

A key factor in this potential shift lies in the concept of flipped support. If the $0.06 horizontal support area manages to hold strong and repel further downward pressure, it could potentially transform into a flipped support level.

Flipped support refers to a situation where a previous resistance level, once broken, now acts as a supportive floor for price movements. In this scenario, the flipped support at $0.06 could serve as a bolstering force, encouraging buyers to step in and drive further recovery for Dogecoin.

Should this bullish scenario unfold, the price of Dogecoin may find itself eyeing the next resistance level at $0.75. Breaking through this resistance could signify a significant achievement for DOGE and attract even more buyers and investors.

A successful breach of the $0.75 resistance could mark a notable milestone, potentially setting the stage for further upward momentum and renewed market enthusiasm surrounding Dogecoin.

Featured image from Personnel Today

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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