Dogecoin’s price was under the pump following a symmetrical triangle breakdown a few days ago. The lack of near-term support levels meant that DOGE was extremely vulnerable to additional pullbacks. At the time of writing, DOGE traded at $0.150, down by 4% over the last 24 hours.
Dogecoin 4-hour Chart
Dogecoin’s price continues to be under pressure after bears capitalized on a symmetrical triangle set up a few days ago. The last four days of trade have accounted for a 20% decline in value, with no pullbacks offered so far. The closest available support for DOGE was at $0.143. The area was significant during DOGE’s April 2021 bull run although it was yet to establish as a reliable defense.
A close below this area would put DOGE in unchartered territory. The lack of additional support levels drags DOGE by 14% to 4 December’s low of $0.124. Any further breakdowns would invite the wrath of short-sellers.
Meanwhile, recovery was a tall order for DOGE bulls. A close above $0.16 would generate more longs but the 4-hour 50 (yellow) and 200 (green) SMA’s would limit any price rallies. Safe longs should only be placed once DOGE closes above $0.175.
Indicators
DOGE’s indicators were in dire conditions. The RSI has not seen any bump despite trading close to the oversold region since 6 January. Expect more losses until the RSI recovers above 45-50.
The MACD formed a streak of lower highs and was trading below the half-line. Interestingly, the index was close to its resistance trendline and momentum could begin to shift if the MACD overcomes its downtrend.
Conclusion
For the moment, buying DOGE is extremely risky. A bearish RSI and MACD lined up further losses for DOGE and none of its near-term price levels are dependable. Hence, shorting DOGE is the way to go. Short trades can be set up once DOGE closes below $0.143 while take-profits can be set at $0.124