Dogecoin (DOGE) Vulnerable to 25% Drop despite Musk’s Support
- DOGE appears to lose ground as the meme coin drops 17% in the past 48 hours.
- Failure to keep the weekly support near $0.163 may lead to continued downswings towards $0.15.
- A 4hr candlestick close past $0.215 will cancel Dogecoin’s bearish thesis.
Dogecoin’s (DOGE) price has seen multiple bullish opportunities over the last two months. However, the original meme token seems to squander them. The latest surge in buying momentum appears to fade, and market payers may witness DOGE keeping its downward trends.
DOGE Price Plans to Print a Base
Dogecoin had its price rising by nearly 16% from 10 January and 14 January, setting a swing peak around $0.216. Remember, the token has retested the barrier three times since 30 November 2021, printing a triple top pattern.
The technical formation (top reversal setup) predicts uptrend end and incoming downswings. The previous two times Dogecoin could not move high meant more retracements, stretching beyond 25%. So far, the coin has lost 17% and trades beneath the weekly resistance obstacle at $0.194.
Amplified selling momentum might drag DOGE price towards the weekly support zone near $0.163. Here, the alternative token might attempt setting a base and kick-start an upward move, but it’s unlikely.
With that, meme coin fans may expect DOGE to revisit the barrier at $0.15, the level it hovered most this year. Meanwhile, the alt might retest the support floor at $0.128 before a dependable uptrend emerges.
On the other side, Dogecoin overcoming the closest obstacle around $0.194 plus a 4hr candle close beyond $0.215 will produce a higher high. Such a development will show bulls’ favoritism, invalidating the bearish case.
Meanwhile, Dogecoin shows weakness despite the latest support from Tesla. Elon Musk tweeted that his merchandise accepts Dogecoin payments. The news had the original dog coin gaining more than 16%. Remember, Tesla billionaire has supported Dogecoin, contributing to its ATH early last year.
Some crypto fans believe Dogecoin’s bullishness no longer depends on Elon Musk. DOGE appears on a downside road now, vulnerable to a 25% downswing. What are your thoughts on the context? Feel free to comment below.