Dogecoin Price Prediction: DOGE Breakdown Seems Imminent in the Wake of Rejection at $0.08

Daily Dogecoin DOGE Technical Analysis

Last Updated July 23rd 2021
2 Min Read
  • Dogecoin rallies to $0.08 after breaking resistance at $0.065.
  • The MACD points toward a potential reversal from the monthly high.
  • Closing the day above $0.07 could call for more buy orders as bulls push toward $0.1.
  • Dogecoin spiked massively over the weekend after breaking the resistance at $0.065. The breakout extended to highs close to $0.08. However, a reversal is underway at the time of writing, whereby DOGE seeks support above $0.07.

    Dogecoin Must Hold Onto $0.07 to Avert Losses to $0.65

    Dogecoin trades at $0.071 at the time of writing. The correction from $0.08 appears as though Dogecoin is taking a hiatus. However, the Moving Average Convergence Divergence seems to have a bearish impulse that may worsen in the short term.

    For instance, the MACD line (blue) currently holds above the signal line as it gradually shifts the direction toward the signal line. A cross under the signal line will likely trigger massive sell orders, which may intensify overhead pressure. Therefore, holding above $0.07 is crucial to the uptrend's sustenance to $0.1.

    DOGE/USD Four-Hour Chart

    It is worth mentioning that closing the under $0.07 could also trigger the sell orders as investors rush to cash out for profit. On the downside, support has been established at $0.06 in addition to the buyer congestion at the 50 Simple Moving Average (SMA) and the 200 SMA on the four-hour chart.

    Dogecoin's Bullish Outlook

    The IOMAP by IntoTheBlock reveals that Dogecoin faces minor resistance in the recovery toward $0.08 and $0.1, respectively. Nonetheless, the on-chain model directs our attention to the region between $0.072 and $0.073. Here, 17,000 addresses previously scooped nearly 762 million DOGE. A break past this zone may bolster the Meme Coin to highs above $0.1.

    Dogecoin IOMAP Chart

    Dogecoin seats on areas with immense support as observed using the IOMAP model. The most robust support runs from $0.06 to 0.063. Here, roughly 72,000 addresses previously purchased approximately 7.9 billion Doge. Moreover, there are multiple medium-strong support levels, unlikely to give way to the bears.