The price of Dogecoin (DOGE) has been steadily dipping, a trend that’s mirroring the broad sweep of the cryptocurrency market. This is somewhat disconcerting for crypto enthusiasts who rallied behind the meme-cryptocurrency when its price experienced a substantial climb to $0.073, a momentum largely accredited to a seeming endorsement from Elon Musk. The inverse trend observed on July 18, where Dogecoin price fell by 1.75% to $0.068, trailing behind the broader crypto market drop of 1%, is being interpreted as a possible outcome of traders pushing to lock in short-term profits spurred by Musk’s influence.
Adding to the downward drive, the crypto derivative exchange landscape witnessed enthusiastic bulls finding themselves trapped in an accelerated selloff situation, leading to long liquidations amounting to about $1.50 million within a span of 24 hours.
From a technical perspective, the corrective phase for Dogecoin kicked off following the encounter with a resistance amalgamation comprising of its 200-day exponential moving average (200-day EMA) and a descending trendline spanning multiple months. Unfolding within sight as DOGE/USD lingers above the resistance morphing into support of 50-day EMA, near $0.068 is the risk of an extended slump to $0.066 during July if this support fails to hold.
As for the long-game outlook, Dogecoin seems to be sketching out what seems akin to a “BARR Bottom” pattern on its daily chart. The BARR stands for Bump-and-Run-Reversal, seen traditionally as a bullish reversal regime when it takes shape within a bear market. Assuming the pattern follows through with further gains, Dogecoin’s price could conceivably escalate up to $0.088 by September 2023, representing a 30% leap from current price levels.
Whilst the future for DOGE appears promising from one perspective, this spark of optimism should not cloud the inherent risks veiled behind trading and investment manoeuvres. A sober understanding of these intricacies becomes imperative as even the most seasoned traders routinely bear the brunt of volatility within the cryptocurrency market. To that end, anyone tossing their hat into the crypto ring should be tempered by thorough research and a willingness to accept sometimes considerable losses. Despite these cautionary notes, one cannot deny that the dawning horizon of the crypto era exerts a certain compelling allure, inviting those curious and brave enough to partake in its unfolding narrative.
Source: Cointelegraph
