Dogecoin Price Prediction as DOGE Drops by 10% – Can the Bulls Regain Control?
15 Mar 2023 7:36 PM
Dogecoin has succumbed to sell pressure on Wednesday, with the meme coin's near-term outlook looking pretty ugly....
- Dogecoin (DOGE) has slumped during Wednesday's US trading hours.
- The sell pressure began after DOGE failed to break above its 21-Day Moving Average (DMA) in the mid-$0.070s, and after a failed attempt on Tuesday to retest the 200DMA around $0.079.
- Prior to Dogecoin’s drop that began in early March, the $0.079 area had been acting as a key zone of support. That support has clearly now turned to resistance.
- Dogecoin’s latest drop has seen it fall back to the south of the $0.07 level, where it trades lower by around 7.5% on the day and approximately 10% lower in the last 24 hours.
- The downside comes as broader cryptocurrency markets succumb to sell pressure, after pumping earlier this week.
- Dogecoin’s latest reversal lower from key areas of resistance suggests that the bulls are far from regaining control.
- Technicians now think a retest of recent lows in the $0.065 area is far likelier than a rally back to the north of $0.08.
- Some bulls are rightfully concerned that Dogecoin might soon retest last year’s lows in the $0.05 area.
- High-profile Wall Street executives like Larry Fink and Ray Dalio have been warning that recent US bank troubles could be the start of a bigger crisis in the US banking sector.
- If they are right, we may soon be talking about aggressive Fed rate cuts.
- The combination of concern about the stability of the traditional finance sector and aggressively easing financial conditions could continue to support crypto, an alternative, decentralized financial system.
- Dogecoin, though created as a joke, has developed into a robust decentralized cryptocurrency network much like Bitcoin.
- If Dogecoin was to break to the north of the downtrend that has been in play since early February, that could open the door to a longer-term move back to recent highs in the $0.10 area.
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The article has a negative sentiment as it talks about the slump of Dogecoin and the bearish near-term price predictions.
What caused the sell pressure on Dogecoin?
What was the key zone of support for Dogecoin prior to its drop in early March?
What is the likelihood of Dogecoin rallying back to the north of $0.08?
What could support the crypto market amidst concerns about the stability of the traditional finance sector?
What could happen if Dogecoin breaks to the north of the downtrend that has been in play since early February?