DOGE price rebound from the 200-day SMA on June 22 spoke to the demand of prominent investors. Still, the DOGE rally quickly failed at May's descending trend line, and it has remained the imposing resistance level against any daily price strength. As a result, the DOGE price has slowly deteriorated, putting the May 19 low in play and forcing the digital asset to decide its fate in the next five days.
The inconclusive price action since the rally high on June 25 at a price of $0.291 has been matched by a complete evacuation of trading volume, indicating a lack of interest in DOGE price at the current levels, and reinforced by an altcoin space struggling to overcome bearish price structures.
Critical to the Dogecoin price outlook or narrative is the dominance of May’s descending trend line level that began on May 8 and continued through the early-June high. The notable resistance level is exemplified by the interaction with the DOGE price over the last 11 trading sessions. More specifically, the digital asset has recorded seven failed price rally attempts above the trend line over the last 11 trading sessions.
The result of the Dogecoin price action highlighted by the trend line resistance level and the emerging support generated by the May 19 low is that DOGE price is being cornered into a narrowing space that should resolve over the next five days. How the crypto resolves from the mini-triangle will dictate the narrative moving forward.
A DOGE price daily close below the May 19 low of $0.195 would instigate a decline to the persuasive support level of the 200-day SMA at $0.171 and potentially to the Anchored VWAP from January 28 at a price of $0.155, or even a sweep of the June 22 low of $0.152.
Outstanding support level also reigns at the April 23 hammer candlestick low of $0.135, representing a 40% decline from the current Dogecoin price.
However, should the Dogecoin price finally lock in a daily close above May’s descending trend line, currently at $0.230, DOGE speculators can forecast better outcomes? The first layer of resistance level is the May 23 low of $0.246, followed by the declining 50-day SMA at a price of $0.330. A successful resolution of the resistance level at the 50-day SMA proposes a continuation of the rally to the June 2 high of $0.463, yielding a 105% gain from the position of the trend line today.
Indeed, the Dogecoin price is being challenged by the descending trend line, but the emergence of the May 19 low as support level has forced DOGE price into a corner that should resolve soon. At this level, it is difficult to discern the final trajectory, but investors should wait for the altcoin to prove itself by triggering one of the price points articulated above.
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