The Dogecoin (DOGE) price is still in chaos after the bulls have lost support of the $0.08 level. The DOGE price is also set to drop even further after bears breached a triangular structure that positioned itself on DOGE throughout May.
DOGE/USDT 1-day chart (Source: FXStreet)
Now that this structure has been breached, bears will more than likely start injecting some capital into their short positions to make a profit from the impending decline in price. Another damning aspect to consider is that the bearish engulfing candle that breached the structure is moving in a free-fall fashion.
At the moment, DOGE is worth $0.07625. It is still possible for a short pause to occur before reaching the next target at $0.072. Unfortunately, it seems like the bears are very unlikely to drop their hold on the meme coin until after the liquidity under the May 12th lows at $0.068 is taken out.
Another bearish factor to acknowledge is that DOGE was rejected on the Relative Strength Index 40 level.
The only way for DOGE to invalidate its current bearish downtrend is to break above $0.085. If this were to happen, it could lead to a relief rally into the $0.12 region, which could lead to a 60% increase from DOGE’s current price.
As mentioned above, DOGE is currently worth $0.07625 after a 3.62% drop in price over the last 24 hours, according to CoinMarketCap. Over the last week, DOGE also saw a 6.59% price decrease.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies
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Source: Cryptocurrency - investing.com
