• If this occurs, Dogecoin traders must be mindful of a fall

  • Over the last week, Elon Musk’s favored cryptocurrency has been going marginally higher. However, recent increases of 5% were nowhere near the double-digit percentage rise recorded by several of its top-10 competitors. According to its chart, DOGE’s price needs an external stimulus to propel the market higher in order to prevent an impending fall.

    Dogecoin was worth $0.207 at the time of writing and ranked eighth on CoinMarketCap’s rankings.

    Daily Dogecoin Chart

    DOGE’s daily chart revealed two symmetrical triangle breakdowns that resulted in losses of 16% and 25%. Its turnaround from the low of $0.63 on 20 June was essential to its market structure, which would have become progressively bearish in the event of another drop.

    As buyers made inroads towards recovery, the reversal opened up an up-channel. However, its technicals were failed to break through crucial levels as DOGE neared the $0.215-resistance at the time of publication.

    Reasoning

    Most cryptocurrencies that rallied alongside Bitcoin have had their daily Relative Strength Index rise above 50-55. Unfortunately, this was not the case for Dogecoin at the time. Its RSI was below 50, indicating that bulls had not taken control of the market. The MACD remained below the half-line as well, with only a minor rise in positive momentum.

    The ADX has been falling in recent days. This indicated that the uptrend in DOGE had slowed. Given these circumstances, DOGE will face an uphill battle to raise over $0.215 in the next few days. In such a case, the price would retrace towards the bottom trendline and the $0.194-support. A closure below this level would open the floodgates for an even more pronounced decline.

    Conclusion

    As the market reached the $0.215 price cap, the rise in DOGE appeared to be fading. Failure to get above this level in the following 24 hours may have a negative impact on the market. DOGE would most likely be pushed back towards its 20-SMA as a result of this.

    Traders should also keep an eye out for a close below $0.194. In such a circumstance, a precipitous drop could be on the horizon.

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