- Dogecoin price slides over 5% and fails to hold support on a crucial level.
- DOGE faces a sharp decline as supportive measures are quite far away.
- First support only shows up after a roughly 28% price drop as volatility picks up for the last ten trading days of the year.
Dogecoin (DOGE) price is in pain as traders pull another big chunk of cash out of the alt currency. The pain came over the weekend after price action slipped below $0.0944 and got a rejection against the red descending trend line. Since then pressure has been building, and DOGE had to break support to the downside as selling overpowered any buying intraday in the ASIA PAC session, with more downside to come if this continues throughout the week.
DOGE is in desperate need of a savior to show confidence
Dogecoin price is thus dropping sharply, with over 5% devaluation currently in the ASIA PAC and European trading session. Traders will keep their powder dry and refrain from placing big bets in the wake of the US Fed meeting on Wednesday and US inflation numbers on Tuesday. Volatility will only pick up further as next week a Super Thursday is set with the SNB, the BoE and the ECB all aligned on the same day, making it one of the biggest and most volatile days of the year.
DOGE is thus not seeing good hopes of a return from investors and traders as they will try to shun these major market-moving events that could hurt even more. With an already lackluster performance for the year, DOGE is again in the corner where the punches are. Expect that DOGE can drop another 28% toward $0.0739 at the 200-day Simple Moving Average (SMA) as that is the only first big level of support and technical supportive element nearby.
DOGE/USD daily chart
Should US equities get fuel from Powell to explode higher, expect a ripple effect into cryptocurrencies with a massive rally and breakout trade. For DOGE, that breakout would be a break above the red descending trend line, puddling through $0.0944 and $0.1000. Once through there, $0.1137 can be put on the radar as a profit-taking level and bear 27% gains for the week, as long as a positive catalyst takes place.