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Dogecoin price trapped in downtrend

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  • Dogecoin price is trapped inside a bearish continuation pattern as buyers are nowhere to be found.
  • Unless DOGE breaks above $0.208, the meme token could continue to trend lower.
  • Breaking below $0.176 could spell even more trouble for the bulls.

Dogecoin price is stuck in a consolidation pattern as DOGE fails to capitalize on investor enthusiasm. Until the dog-themed token is able to overcome a series of hurdles with the final hurdle at $0.23. The meme token may remain trapped inside a downtrend.

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Dogecoin price trapped in a tight range.

Dogecoin shows it trapped inside a parallel downward channel with lower highs and lower lows. The meme token is attempting to rebound from its November 26 low of $0.186. However it is running into resistance at $0.208, which is the middle border of the dominating technical pattern.

DOGE may continue to consolidate unless the price of Dogecoin can overcome the aforementioned barrier. Dog-themed tokens may find some defense at the 78.6 percent Fibonacci retracement at $0.199. Followed by the September 26 low at $0.193.

Before Dogecoin price reaches the lower border of the prevailing chart pattern at $0.176, an extra support point could appear at the local low of $0.186.

Investors should be aware that if DOGE goes below the parallel channel trendline, a final negative scenario of a 22% drop to $0.137, the bearish goal set by the ruling technical pattern, may be on the table.

DOGE bulls should aim to break above the median boundary of the prevailing chart pattern at $0.208.

DOGE bulls should try to break above the median border of the existing chart pattern around $0.208 to reverse the period of slow performance. There may be additional resistance at $0.213 for the 21-period simple moving average on the 4-hour chart. Additionally $0.221 for the 50-period SMA.

The 61.8 percent Fibonacci retracement at $0.232, which coincides with the resistance line provided by the Momentum Reversal Indicator (MRI) and the top boundary of the parallel channel, may present another severe block.

Escape over the ruling technical pattern’s upper trendline might enable the meme token’s momentum to change to the upside, potentially indicating higher ambitions. To recoup recent losses, Dogecoin pricing must also break above the 100 SMA at $0.236 and the 200 SMA intersecting the 50 percent retracement at $0.254.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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