Dogecoin Price Analysis
Dogecoin price fell below $0.10 on Aug 4, matching Shiba Inu’s 8-day losing streak. Three technical indicators suggest DOGE will likely experience further downside in the week ahead.
DOGE Mirrors Shiba Inu’s 8-Day Losing Streak
The global memecoin market has been in turmoil over the past week. Despite mild bearish catalysts, investors continued to shy away from major memecoins including Dogecoin and Shiba Inu. Both DOGE and SHIB, the two largest memecoins, have posted similar performance.
According to TradingView data, the last time Dogecoin experienced positive price action was on July 27. Since then, DOGE has closed at a lower price than its opening price in each of the last 8 trading days. On Aug 4, DOGE briefly tumbled below $0.10, reflecting a 28.65% price decline during that period. Shiba Inu also recorded a 26.17% loss in the same period.
Losing the $0.10 level could lead to cascading market liquidations and open DOGE to further downside risks in the week ahead. These three critical technical indicators offer real-time insights supporting this bearish Dogecoin price outlook.
RSI Suggests DOGE Price is Nearing Danger Zone
RSI (Relative Strength Index) is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100. The RSI for Dogecoin on the daily DOGE/USD chart has dipped to 34.09, indicating that the asset is nearing oversold conditions. If the RSI continues to fall below 30, it could signal a stronger bearish trend, pushing DOGE prices further downward in the week ahead.
Choppiness Index Also Confirms Downward Volatility
The Choppiness Index quantifies whether the market is trending or trading sideways, with values closer to 100 indicating a choppy market and values closer to 0 indicating a trending market. The Choppiness Index for DOGE is at 37.46, indicating a transition from a choppy phase to a bearish trending phase. A low Choppiness Index reinforces the potential for sustained downward movement.
DOGE Price Forecast: Bollinger Bands Highlight Critical Support at $0.10
Dogecoin’s recent price action shows a bearish trend as it trades around $0.105. The Bollinger Bands on the daily chart show an expanding volatility range, with the price near the lower band, emphasizing downward pressure. A critical support level at $0.10, if breached, could lead to further losses. The midline of the Bollinger Bands, around $0.125, acts as immediate resistance. Further resistance is at the upper band near $0.143. If the $0.10 support fails, DOGE could test lower levels around $0.095 or $0.090.
If the technical structure continues to weaken, DOGE could see additional downside risks in the immediate future.
