The Dogecoin price is grinding sideways in lacklustre trading after Elon Musk failed to inspire new investor interest in meme-coin.
Dogecoin (DOGE) is unchanged at $0.1685 (+0.00%) early Monday, down around 25% from last weeks high and around the same distance from the early December low. Last Tuesday, the OG meme-coin popped briefly when Tesla Supremo Musk announced the EV-maker was considering enabling Dogecoin payments for merchandise. However, the 50% jump quickly reversed after analysts warned the DOGE faithful not to read too much into the statement. Since then, the Dogecoin price has erased most of the gains and looks likely to head lower still.
The daily chart shows Dogecoin is approaching the broad support channel between $0.1250 and $0.1600. I expect DOGE will soon test the bottom of the track at $0.1250, considering the poor reaction to Musk’s statement. Furthermore, if the broader cryptocurrency market continues lower, DOGE could extend below $01.250.
Unfortunately, for DOGE holders, the chart offers little optimism. Despite the coin trading at an 80% discount from the May all-time high, the volume data shows a lack of buying, highlighting investor apathy. On that basis, I am bearish with a $0.1250 price target. However, a close above the 200-Day Moving Average at $0.2428 invalidates the thesis.
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This post was last modified on Dec 20, 2021, 05:54 GMT 05:54