Dogecoin bears gaining momentum for another downtrend

TL;DR Breakdown

• Dogecoin price has gained over 6,800% since the beginning of the year
• buyers could invalidate the prevailing downtrend and drive the price of DOGE towards $0.45 and $0.47.
• The RSI points to the negative zone suggesting the bears could bottom at the falling wedge support 

Dogecoin Price Prediction: General price overview

Dogecoin (DOGE) has gained over 6,800% since the beginning of the year and more than 13,561% within the past 12 months. However, the coin seems to be caught within a bearish whirlwind and it has been on this  trend for three consecutive days.  The price of the coin is hovering between $0.28 – $0.30, with the bulls attempting to break above the 50-day simple moving average at $0.31.

More buyers could invalidate the prevailing downtrend and drive the price of DOGE towards $0.45 and $0.47. The bears activated a downward movement of the  2-day exponential moving average ($0.44) at the start of the weekend. Thereby giving the bears an advantage to take over the price and target $0.30. If the bulls are not able to jump in quickly and adjust the moving averages to their advantage, they risk a breakdown to $0.21. If they are strong and quick enough to sustain the price above $0.31 , a breakout to $0.47 is on the sides and a subsequent surge to $0.57.  

The crypto meltdown that began on Wednesday  has already wiped over 55% of investor capital. Invalidating any considerable hopes of a near term consolidation. At the time of writing, DOGE is trending in a 14-days falling wedge formation at a price of $0.2991. 

Dogecoin price movement in the past 24 hours

The intraday price range for dogecoin is between a daily low of $0.2800 and a daily high of $0.3506. The coin formed a descending channel since the early start of the daily chart . Dogecoin’s trendline on the 24-hour chart might hold the bulls hostage and sustain a downswing to $0.15. However, if the bulls can gain support from the broader market, the coinciding level between the wedge resistance and the 50-day moving average will be the next bullish target. 

Dogecoin price movement in the last 4 hours

The RSI points to the negative zone suggesting the bears could bottom at the falling wedge support at $0.2602.   If the price manages to retest a falling wedge breakdown, a $0.1950 swing low is imminent. The bulls can only bet a rebound across the wedge support for dogecoin to hit levels above the 21-day moving average and subsequently target the 200 simple moving average, which currently stands at $0.4199. 

Conclusion

Elon Musk’s recent comment about DOGE failed to elicit any bullish action on the price of the altcoin.  For 3 days, the coin has been trading along a bearish trendline and this might be attributed to China’s crackdown of mining operations in the country.

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