- During the European session, Dogecoin is consolidating at the 0.2463 level, losing –1% for the day.
- The Dogecoin price prediction remains bearish below an immediate resistance level of $0.265.
- Forex trading participants will be looking for a sell trade below the $0.2651 level to reach the target of $0.2350 and $0.1969.
During the European session, Dogecoin is consolidating at 0.2463 level, losing -1% for the day. The day before, the DOGE/USD exchange rate closed at $0.254500, having reached a high of $0.311100 and a low of $0.215400. If you are wondering what to expect and where to buy Dogecoin, let’s find out below…
Dogecoin on hold after dropping about 30% in a single day
Dogecoin extended its loss and dropped for the third consecutive session on Wednesday and faced a steep fall in prices amid the recent flash crash in the market. The DOGE/USD dropped by about 30% in a single day to its lowest level in one month. The price of most cryptocurrencies fell on Tuesday, while some altcoins hit new highs. The sudden fall in the cryptocurrency market was associated with the Bitcoin Law implemented in El Salvador on Tuesday, which made Bitcoin its legal tender.
According to the latest law, the citizens of El Salvador can choose to use Bitcoin as payment, and companies must accept it in exchange for goods and services. Furthermore, they can also choose to pay taxes in Bitcoin, and Bitcoin exchanges will not be subject to capital gains taxes. The move to make bitcoin legal tender should have positively impacted the whole crypto market, but the trend moved otherwise.
News surrounding El Salvador Continues to Play.
Some analysts believe it was not surprising but rather predictable because El Salvador’s news has already been priced in. Analysts believed that the announcement did not provide in-depth details and people were still unclear how the law would be implemented. Thus, they remained cautious, which prompted a sell-off.
Additionally, the population of the whole El Salvador country is less than New York City, which could have played a role in driving the prices of the crypto market to the downside.
Along with BTC/USD, many significant cryptocurrencies also dropped yesterday, and the cryptocurrency DOGE was one of them. DOGE/USD fell to a one-month low on Bitcoin Day in El Salvador, facing heavy selling pressure in the absence of any network-related fundamentals.
Moreover, the rising US dollar price also added to the further loss in DOGE/USD on Wednesday. The DXY advanced to 92.5 and added extra negative pressure on Dogecoin as both have a negative correlation. The US dollar was also high because of the high US Treasury yields on the benchmark 10-year note that reached 1.38% and supported the rally in the greenback.
Dogecoin Price Prediction – Technical Levels
Support Resistance
0.209566 0.305266
0.164633 0.356033
0.113866 0.400966
Pivot Point: 0.260333
DOGE/USD Violates Upward Channel at $0.3000- Where to Buy Dogecoin?
Dogecoin price prediction remains bearish below an immediate resistance level of $0.265. Previously, Dogecoin has violated an upward channel that we can see on the 4-hours timeframe. That was providing strong support around the $0.3170 level. However, the closing of candles below the 0.3000 level suggests a strong selling train in Dogecoin.
On the bearish side, Dogecoin is gaining immediate support at around a $0.2350 level. Moreover, the $0.2350 level breakout is likely to extend the selling trend until the next support level of 0.1969. In addition to this, the breakout of 0.1969 is expected to add another round of selling until the $0.1694 level.
The 50 periods EMA (exponential moving average – red line) stays at 0.2810. As we can see, Dogecoin is closing candles below the 0.2810 level, which confirms that the selling trend remains solid today. At the moment, Dogecoin is trading in a narrow trading range between 0.2650 – 0.2350. A breakout of this particular range is likely to define further trends in the pair.
Lastly, the leading technical tool, Stochastic RSI, holds in a sell zone below 20, confirming a bearish bias among investors. Therefore, the forex trading participants will be looking for a sell trade below the $0.2651 level to reach the target of $0.2350 and $0.1969. All the best.
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