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Dogecoin price analysis: Is a retest of $0.05 possible?

By Rakesh Upadhyay

Edited by Martyn Cornell


Updated

Dogecoin logo
Dogecoin plunged more than 9% after an online poll showed that the majority wanted Elon Musk out as Twitter CEO – Photo: Shutterstock

Dogecoin (DOGE) was the second-most searched cryptocurrency globally in 2022, research by the  personal finance portal DollarGeek found. The meme coin was the subject of  an average of 5.85 million searches worldwide in 2022. Though DOGE is down about 58% in 2022, it is the third-best performer among the top 10 cryptocurrencies by market capitalisation, data from Crypto Bubbles reveals. This shows the kind of carnage in the crypto space this year. The bears are trying to increase the damage in DOGE by pulling the price below $0.07 as of 28 December 2022.

Dogecoin, which had rallied after Elon Musk’s purchase of Twitter, plunged more than 9% on 19 December, after an online poll conducted by Musk showed that the majority wanted him to step down as the head of the social media platform.

In a year of major upheaval in the cryptocurrency markets, the market capitalisation of Coinbase Global Inc, the largest public digital-asset exchange in the United States, fell below Dogecoin.

Will the new year attract buyers? Could dogecoin go up? Read the DOGE price analysis to find out.

Dogecoin price technical analysis: Weekly chart

Dogecoin weekly price chart for 28 December 2022 Dogecoin weekly price chart for 28 December 2022 – Source: Capital.com

 

DOGE’s price has been trading below the moving averages, and the relative strength index (RSI) has dipped into negative territory. This indicates that the momentum has turned bearish in the near term.

The bears will try to maintain the selling pressure and pull the price to the pivotal support near $0.05. This level is likely to attract huge buying by the bulls b,ecause if this support cracks, the selling could intensify and the DOGE/USD pair could resume the downtrend.

If bulls want to prevent this decline, they will have to quickly push the price above the moving averages, and the overhead resistance at $0.11. The pair could then climb to $0.18, where the bears may again mount a strong defence. 

XRP/USD

0.57 Price
-9.510% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,415.94 Price
-0.260% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

63,707.40 Price
-1.390% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

BCH/USD

376.05 Price
-0.760% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

Dogecoin price technical analysis: Daily chart

Dogecoin daily price chart for 28 December 2022Dogecoin daily price chart for 28 December 2022 – Source: Capital.com

Dogecoin’s price has formed a bearish descending triangle pattern, which will complete on a break and close below the vital support at $0.07. The downsloping moving averages and the RSI in negative territory indicate that bears hold the advantage.

If the price breaks and sustains below $0.07, it could start a short-term downtrend. The pair could gradually drift lower and retest the June low near $0.05.

Contrary to this assumption, if the price rebounds off the current level at $0.07, it will suggest that bulls continue to defend this support with all their might. The pair could then recover to the 20-day exponential moving average (EMA) and later to the 50-day simple moving average (SMA).

A break above this resistance zone could indicate that the bears may be losing their grip. That could also signal the formation of a higher low at $0.07. The pair could then rally to $0.11. If the price turns down from this resistance, the pair may remain range-bound between $0.07 and $0.11 for a few days.

Dogecoin: Buy or sell this week?

Dogecoin is at a critical juncture. If the price falls below $0.07, dogecoin’s price analysis suggests a drop to $0.05. Conversely, if the price rebounds off the current level and breaks above the resistance line of the triangle, it could attract buyers. The pair could then rally to the overhead resistance at $0.11.

The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.

Markets in this article

DOGE/USD
DogeCoin / USD
0.1193092 USD
-0.0044737 -3.640%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
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