The price of Dogecoin is expected to fall below $0.10 as unfavorable headwinds intensify
The price of Dogecoin has returned to below the falling trend line.
The DOGE price is expected to continue its downward trajectory as the geopolitical scenario worsens market sentiment.
Once the monthly S1 support is breached, the DOGE price is expected to go below $0.1.
As global headlines and the approaching Fed rate decision weigh heavily on cryptocurrencies, the price of Dogecoin (DOGE) is expected to resume its downturn as price action drops below the long-term red falling trend line from August 2021. The monthly S1 support level at $0.12 is the sole close support level that might stop losses. When it fails, expect an accelerated sell-off towards $0.094, a drop below $0.1, and a 30 percent loss.
Dogecoin bears are bracing themselves for a 30% increase
Dogecoin pricing appeared to be off to a good start this week, as DOGE price gained on Sunday. However, mood swiftly deteriorated following a sequence of events on Monday morning, as the geopolitical situation between Russia and the United States worsened and market players elected to remain on the sidelines ahead of the FED rate decision later in the week. As bears see a chance to force the DOGE price down, a break below the red falling trend line from August further strengthens their case for a large short squeeze lower.
As it held the dip on January 22, the DOGE price will view the S1 monthly support at $0.12 as the first and sole support factor in the short future. A breach below would cause many bulls’ stops to be activated, giving bears a free ride towards $0.094, the April 14 low and a critical stage in the uptrend. Bears are likely to book gains at that level, since it represents a 30 percent profit from entrance at the red falling trendline at $0.13.
As previously said, the S1 support level may still prevent DOGE price action from losing more value. If that level holds, markets will interpret it as confirmation of a bullish presence, setting the stage for a false drop followed by a breakout over the red declining trend line once more. Bulls would then rush into the DOGE price response, driving it back towards $0.16 or possibly $0.19 if present headwinds faded as rapidly as they arrived.