Dogecoin Price Forecast: DOGE Tumbles To $0.16, Here Is What Comes Next

Last Updated July 23rd 2021
2 Min Read
  • Dogecoin price is back on the drawing board, testing June lows at $0.16.
    • A daily close above or below the crucial support at $0.16 will determine the future of Dogecoin.

    Dogecoin has been denied all chances for recovery, with losses extending significantly below $0.2. The breakdown on Tuesday during the Asian session pushed DOGE to $0.16, a level that played a critical role in ensuring that losses did not extend further in June. With this support holding ground, bulls may resume the uptrend. However, the technical picture remains generally bearish at the time of writing.

    Dogecoin Price Deals With Numerous Sell Signals

    Dogecoin is trading at $0.165 at the time of writing and in the wake of a 10% loss. The extensive selling pressure has seen the 24-hour trading volume shoot to $1.3 billion, according to data by CoinGecko. The 21.5% cumulative weekly loss shines a light on the general downtrend, not just for DOGE but the entire cryptocurrency market.

    The Relative Strength Index (RSI) keeps losing ground toward the oversold region. The RSI is a trend-following technical tool that calculates the strength of either the bulls or the bears.

    A sharp dive toward the oversold area is indicative of formidable seller dominance. Hence, Dogecoin is firmly in the bears’ hands until robust support giving bulls some semblance of balance comes into the picture.

    DOGE/USD four-hour chart

     DOGE/USD four-hour chart

    The exact four-hour timeframe shows a vividly bearish Moving Average Convergence Divergence (MACD). Like the RSI, the MACD follows the trend of an asset and calculates the momentum.

    A call to sell DOGE surfaced when the 12-day exponential moving average crossed beneath the 26-day EMA. The odds for immense losses soared as the MACD explored deeper levels under the mean line (0.00).

    DOGE/USD four-hour chart

     DOGE/USD four-hour chart

    Looking At The Other Side The Picture

    The TD Sequential indicator has just flashed a call to buy Dogecoin on the four-hour chart. This sell signal manifested in a red nine candlestick, implying that the bearish outlook could be fading in favour of a bullish takeover.

    It is essential to note that support at $0.16 could help validate the buy signal. At the same time, signals of the uptrend resuming toward $0.2 will call more buyers into the market as they speculate on Dogecoin rising to higher levels.