This week, the Dogecoin price has struggled amid the broad sell-off of digital assets and stocks. DOGE retreated to a low of $0.065, which was the lowest point since April 2020. This means that the coin has erased most of its gains last year amid the cryptocurrency rally. It has fallen by over 87% from its all-time high. So, what next for the DOGE token?
Dogecoin has dropped sharply, thanks to the sharp decline across assets after worries of contagion jumped. The contagion risks came as the LUNA price crashed from over $120 earlier this year to zero. One of the biggest coins in the world experience such a drop, caused shivers among crypto holders. Some cryptocurrency investors compared it to when Lehman Brothers collapsed.
There are also concerns about the Federal Reserve, as its interest rate hikes caused significant worries among the investment community. The bank has already hiked interest rates by 0,75%, and analysts believe that more hikes are coming. In a statement overnight, Jay Powell warned that fighting inflation will have some pain. He said:
The process of getting inflation down to 2 per cent will also include some pain, but ultimately the most painful thing would be if we were to fail to deal with it and inflation were to get entrenched in the economy at high levels.”
So, what next for the Dogecoin price?
The DOGE price has crawled back in the past few hours. It has risen from this week’s low of $0.0657 and is trading at $0.095. This rebound is happening as Bitcoin managed to move above the key support at $30,000. A closer look shows that DOGE has formed a hammer candlestick pattern. In price action analysis, this pattern is usually a bullish sign.
Therefore, there is a likelihood that the Dogecoin price will keep rising as bulls target the key resistance level at $0.10. This is a notable price since it was the lowest level on February 23rd. However, the coin will then resume the downward trend. The stop-loss for this trade is at $0.081.
This post was last modified on May 13, 2022, 09:04 BST 09:04