Market

Short DOGE looks ideal right now as prices are likely to fall in the next few weeks

Dogecoin has been battered, traumatized and overshadowed by smaller clones for a month and a half. Since mid-August, the top coin meme has lost nearly 45% in value after falling below key levels. Additionally, a collapse of the descending triangle and a return to the lower trendline increases the likelihood that DOGE will continue to decline in the days ahead.

If sellers can push the cryptocurrency below the $ 0.155-0.175 demand zone, the market will bleed seriously.

1D DOGE / USDT chart. Source: TradingView

Although Dogecoin shed a glimmer of hope in August, the price was immediately rejected above the 23.6% Fib level. The result was a descending triangle collapse that triggered another decline after the bulls failed to hold above $ 0.232.

With the bearish signal in effect at press time, the market appears very vulnerable to a slide towards $ 0.155 to $ 0.175. Ideally, this demand zone would provide buyers with an entry point to step in and withstand the pressure to sell. However, given the current lack of retail interest, it is uncertain whether the demand zone can provide support.

If DOGE closes below this range, the price could drop to $ 0.087 or even $ 0.065 before a bullish reaction occurs.

Unsurprisingly, DOGE’s technical indicators are also very weak. The candles are trading below the EMA band and this gives more sell signals to the market. The bands have also had some overlap in the past few days, signaling the start of a strong downtrend.

In addition, the RSI and the Awesome Oscillator have moved into bearish zone. Selling pressures will likely overwhelm any chances of a bullish rally.

Based on the above factors, Dogecoin is expected to trend lower in the coming weeks. The coin meme is likely to slide towards the $ 0.087 and $ 0.065 levels if the $ 0.155 to $ 0.175 zone does not hold.

The ideal opportunity for the bulls to buy DOGE would be in the aforementioned demand zone. However, long DOGE is very risky at all costs. A short run would be ideal at this point.

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Annie

According to Ambcrypto

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.