When the Dogecoin price cleared its downtrend on Monday, it should have led to a sustained rally. However, DOGE is turning lower, which isn’t a good sign.
Dogecoin is last trading at $25.04, lower by $0.0130, (-4.96%).
DOGE has slipped down the rankings a little recently. However, the worlds favourite meme-coin is still the 6th largest cryptocurrency and has a market cap of around $32.5 billion.
Last week, It was looking like DOGE needed to be put out of its misery. After Bitcoin was slammed below $30,000, the Dogecoin price was pushed under $0.2000 and traded as low as $0.1600 before finding a floor.
However, the price has staged what could be considered a remarkable recovery. By last Friday, DOGE had gained close to 90% from the low of Tuesday’s collapse.
Furthermore, the rally lifted DOGE above the $0.2500 resistance of a descending trend line.
So this should be positive. However, the price has started to roll over and presently is around 15% below Fridays $0.2914 peak.
The Daily chart shows us that the Dogecoin price remains above the trend line resistance.
The trend line begins at the 8th of May high of $0.7600 and lines up with a series of highs from earlier this month. After breaking above the trend, DOGE did retest the line, which is now considered a support level. The subsequent test was successful, and the Dogecoin price bounced.
Therefore this validates the significance of the support.
However, the rally again stalled around $0.2800.
The $0.2800 resistance level is reinforced by several lows from the end of May, all around the same price. On that basis, I would consider this to be an important resistance. Should DOGE punch through this area, it has room to continue towards $0.4600.
That being said, the current momentum is clearly negative.
The downtrend support is now seen at $0.1870, about 23% below the last traded price. Furthermore, that will be lower every day we move forward.
A break below this line would pass the baton to the bears and likely lead to a much steeper decline.
So, for now, DOGE maintains a slightly bullish bias. Of course, that outlook will improve immeasurably above $0.2800.
And turns sharply negative below $0.1870.
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