Dogecoin Price Prediction After Reversing Recent Gains

Summary:
• Dogecoin price has erased the gains recorded late last week. It will likely remain below the crucial level in the short term.

Dogecoin price is on downward momentum for the fourth consecutive session. Last week’s was a reaction to Tesla CEO’s tweet indicating that the company will start accepting the cryptocurrency as a means of payment for merchandise. However, it is back below the psychologically crucial level of $0.2000 as extreme fear persists in the crypto market.

Risk aversion has weighed on the digital assets for over a month. In Monday’s session, the crypto fear & greed index was at an extreme fear level of 22 compared to the previous session’s reading of 21.  

Dogecoin price prediction

DOGE has eased after heightened downward momentum over the weekend. After hitting a one-month high of 0.2153 on Friday, the altcoin has dropped by over 20%. At the time of writing, it was down by 3.23% at 0.1710.

On a four-hour chart, Dogecoin price is hovering around the 50-day exponential moving average. Besides, it is below the 25 and 200-day EMAs.

In the short term, it will likely trade within a rather tight range with 0.1658 and 0.1763 as the horizontal channel’s lower and upper borders respectively. The aforementioned resistance level is along the 25-day EMA.

Further decline past the range’s lower border will likely place the support level at 0.1588. On the flip side, a rebound past the current resistance level may push Dogecoin price to 0.1810 or higher at 0.1871. Even with the rebound, it will likely remain below the psychologically crucial level of 0.2000 in the short term as the bearish outlook persists.