Dogecoin Price Movement Analysis for 23rd September, 2021

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Dogecoin has had a rough month and a half, battered, bruised, and possibly overshadowed by its smaller counterparts. Since mid-August, the meme coin has lost nearly 45 percent of its value after falling below critical levels. Furthermore, a descending triangle breakdown and a potential reversion to the lower trendline exposed DOGE to further losses in the coming days.

If sellers are successful in pushing the cryptocurrency below the demand zone of $0.155-$0.175, the market will suffer severe losses.

Dogecoin Daily Chart

Despite offering a glimmer of hope in August, Dogecoin’s price was immediately rejected above its 23.6 percent Fibonacci level. After bulls were unable to keep DOGE above $0.232, a descending triangle breakdown occurred, triggering yet another drawdown.

Since a throwback was in effect at the time of publication, the market appeared to be extremely vulnerable to a drop towards $0.155-$0.175. In an ideal world, this demand zone would provide a platform for buyers to enter and respond to selling pressure. However, given the current lack of retail interest in the market, the demand zone is unlikely to provide any assistance.

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If DOGE does close below this area, losses could extend up to $0.087 or even $0.065, before a bullish response is observed.

Reasoning 

It was not surprising to see some weak observations across DOGE’s indicators. The candles traded below their EMA Ribbons and this attracted more sell signals in the market. The Ribbons also flashed a few crossovers over the past few days and pointed to the onset of a bearish trend.

Moreover, the RSI and Awesome Oscillator moved in bearish zones. Ergo, the selling pressure can be expected to trump any chances of a bullish revival.

Conclusion 

Based on the aforementioned factors, Dogecoin can be expected to trend lower over the coming weeks. Levels such as $0.087 and $0.065 might even become a reality if losses are not contained between $0.155 and $0.175.

For bulls, an ideal chance to buy DOGE would be within the aforementioned demand zone. However, longing DOGE at any price level does carry a lot of risks. Taking short calls would be the way to go right now.

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