The price could lose the diagonal support, which would invalidate the descending wedge figure, allowing for sales to a low of USD 0.08. If the value of DOGE loses the demand zone close to USD 0.11, there will be new short-term bearish momentum.
A recent tweet from Elon Musk caused the price of meme coin Dogecoin (DOGE) to rise by almost 10%. However, that did not help much, as the short/medium-term trend is still in the hands of sellers.
DOGE is trading at around USD 0.11 and has accumulated a 0.1% gain in the last 24 hours. Its daily trading volume is above USD 372.83 million, and its market capitalization is about USD 15.47 billion. It occupies 13th place in the cryptocurrency ranking, according to CoinGecko.
The CEO of Tesla asked his Twitter followers what they thought about the rate of inflation in the coming years. Michael Saylor, the founder of MicroStrategy, replied that weaker currencies would collapse, and the flight of cash capital would increase. He added that the price of value stocks and scarce assets like Bitcoin would continue to rise.
Accepting the prediction to a certain extent, Musk told Saylor it was best to own a house or stock in companies making good products. He believes that those assets offer more advantages than US dollars during high inflation.
The controversial businessman closed the tweet by writing he still had and would have his Bitcoin, Ethereum and Dogecoin holdings. That comment quickly boosted the price of DOGE, very susceptible to those catalysts, but the excitement among traders did not last long.
Weekly Technical Analysis of the Price of DOGE
The weekly DOGE/USDT chart shows that the recent rally was irrelevant.
Since the price of Dogecoin is undergoing a significant correction, the medium-term trend is still in the hands of sellers.
That strong direction exerts further pressure, and the price currently shows no evident signs of a reversal.
However, the bullish force is dominant in the long term. Besides, the decline in the price has been losing steam over the months. For that reason, the holders of that cryptocurrency might think it is close to the bottom.
If there are increasingly low lows, the selling will be more likely to continue.
The weekly chart shows the price has been in a descending wedge, announcing a possible change in direction. The price might lose the diagonal support, which would invalidate the figure, and it would allow for sales to a low of USD 0.08.
Before thinking about buying, the price has to break through the diagonal resistance it reaches. In addition, it will be possible to expect the value to cross the horizontal resistance at USD 0.15.
Key Short-Term Levels in the Price of DOGE
Due to the recent momentary jump of the value of DOGE and the rejection of that intention, further selling is quite likely to occur next.
The price of the meme coin is still in a demand zone close to USD 0.11. Losing that level will mean the confirmation of new short-term bearish momentum.
For a rally to occur soon, the price first has to break through resistance at USD 0.12.
The decline of the cryptocurrency market has affected the price of altcoins like meme coin DOGE. Besides, news events like the conflict between Russia and Ukraine have made it drop.
By Alexander Salazar
