Dogecoin price caught in a bull-trap, DOGE looks for support below $0.20


  • Dogecoin price was a laggard in the recovery on Tuesday after the whipsaw action in most cryptocurrencies.
  • Where most cryptocurrencies are making a profit and looking for further upside, DOGE is looking heavy.
  • It might be set to dip further below $0.20 in the coming weeks.

Dogecoin price is a bit of an outlier this week since it does not seem to fit that narrative. It missed the boat with the jump to the upside. Instead, it burnt its fingers again on the $0.28-level only to trade lower.

Instead of enjoying the momentum to the upside, DOGE even dipped below the 55-day Simple Moving Average (SMA) and is now facing three caps to the upside.

Dogecoin price bound for another downswing

Dogecoin price looked very positive around June 21 when DOGE bounced off $0.153 to recover toward $0.28. Unfortunately, it could not consolidate above it, so it dipped back down to form an intermediary trendline. That dotted ascending trend line can be seen on the daily chart below.

Even the 55-day SMA got broken to the upside and was used as a catalyst for further upside. But again, Dogecoin buyers burnt their fingers on the $0.28-marker.

All those positive factors from just seven days ago are now causing headaches for Dogecoin investors. The dotted ascending trend line broke to the downside, which shows that sellers are taking over DOGE.

Next to that, we have the 55-day SMA turning back to resistance. Dogecoin price action sees a fade to the downside with lower highs and slightly lower lows.

DOGE/USD daily chart

Even if Dogecoin price could recover, the picture still is not bright with the 200-day SMA coming in flat on that $0.28-level and the monthly pivot at $0.283.

DOGE is given three reasons not to go much higher than that. 

Look for completion of the squeeze to the downside, with stops being run at $0.2210. A test toward the $0.20 psychological level would be granted before buyers will pick up Dogecoin again.

 



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