Double-Digit Losses Brings Doge Below Critical Level, More Pain To Follow?
Dogecoin (DOGE) has seen some of the worst declines in the last week. The meme coin is already down double-digits during this time and is also recording losses on the daily charts. While this is not out of the ordinary given the current crypto market trend, the digital asset has been pulled below important critical levels, which would imply more declines.
DOGE Could Go Down Further
Given Elon Musk’s recent radio silence on his crypto plans for Twitter and thus Dogecoin by extension, the meme coin has been unable to maintain its upward momentum. It is now down almost 50% from its most recent November peak of $0.15. But perhaps more concerning is the fact that its 15% decline over the last 7 days has dragged it down below the 50-day moving average.
DOGE’s 50-day MA is currently sitting at $0.086, whereas the price of the digital asset has now fallen to $0.082 in the last 24 hours. Previously, the cryptocurrency had been on a bullish path as it continued to maintain its value above this level. However, a decline below this point shows that there is now less buying in the market.
The meme coin is continuing to maintain above its 100-day MA of $0.075 but this could also be short-lived if the sellers continue to gain momentum in the market. If the price were to fall below the 100-day MA, it would turn forecasts for the digital asset to sell not just for the medium term, but for the long term as well.
The Weekend Impact
The weekend is already established as a period of low volatility. This is because while the crypto market does not see a close of the trading week, the close of the broader financial markets impacts the market as well. It leads to less volume and less momentum in the market.
Given this, it is important for cryptocurrencies such as DOGE to finish strong on Friday if they are to maintain a bullish trend through the weekend. Otherwise, the impact of this low volume can push the prices further down.
If DOGE is unable to beat the $0.09 resistance level before the end of Friday, then it could see the $0.07 territory before the weekend is over. There is not much support for the meme coin at this level, so bulls will likely have to build support around $0.065 to hold off the bears if this happens. However, if the digital asset can finish strong above $0.09, then there is the possibility of a rally above $0.1.
DOGE was trading at $0.0826 at the time of this writing, according to data from Coinmarketcap. It is down 5.85% in the last 24 hours and 25.83% in the last seven days.