Dogecoin price approaches crucial threshold

Dogecoin price approaches crucial threshold

 

 Dogecoin’s price has dropped 76% from its peak in April to where it currently stands – $0.178. Over the past week, DOGE’s price has slid 18% and roughly 40% since June 19, indicating that the investors are offloading their holdings.

While Musk’s tweet on July 17 temporarily propped up the DOGE price, the sell-off has resumed. If Dogecoin price continues to tumble, it will approach the $0.161 support level, which forms the neckline of a head-and-shoulders pattern.

This technical pattern formation contains three distinctive peaks, with the central swing point higher than the other two, referred to as the “head.” The swing highs on either side are known as “shoulders.”

All the peaks bounce from a support level at a price of $0.161, called the “neckline.” 

The setup forecasts a 78% decline to a price of $0.0177, determined by adding the distance between the head’s peak and the neckline to the breakout point at a price of $0.161. 

Therefore investors need to keep a close eye on a decisive daily candlestick pattern close below the said level as it will confirm the start of a downtrend.

The demand zone extending from $0.0446 to $0.0879 level might absorb the selling pressure and even contain it, but an increased bearish momentum could easily slice through this barrier.

On the other hand, the sell-off can be delayed if Dogecoin price manages to stay above the neckline at a price of $0.161.

Although unlikely, the DOGE price needs to rally 81% and produce a decisive daily candlestick close above $0.294 to invalidate this bearish thesis.

In such a case, Dogecoin price might surge 142% to tag the June 2 swing high at $0.447.

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