Dogecoin price action continues to head south, with the coin losing 0.75% of its value at 0633 GMT on Wednesday. That brings DOGE’s total losses for the past week to about 13.5%. The losses mean that DOGE is the third largest loser among the crypto market’s top ten assets over that period.
Dogecoin has also slipped to the tenth position in market ranking as a result. With the crypto market in a general downtrend, it minimizes chances of meme coins going against the grain.
Opportunity to buy the dip and prospect of a pullback
On the brighter side, the depreciation by both Dogecoin and Shiba Inu presents a good opportunity for investors to buy the dip. That is especially true for those who were caught off-guard by Shiba Inu’s fast rise to become among the most valuable cryptocurrencies.
Dogecoin had a good run during the recent market rally, but it didn’t match Shiba Inu’s. While SHIB registered multiple all-time highs between September and November, Dogecoin’s ATH was registered in May. Therefore, the battle between the two meme coins could propel DOGE to attempt an ATH at the earliest signal of the next market rally. In the meantime, the market has all the hallmarks of bearishness in the near-term.
Technical analysis for Dogecoin price
The Dogecoin price has been struggling for momentum over the past eight days. The RSI has fallen to 39, signaling that further loses could be lying ahead. The 10-EMA (green line) crossed under the 20-EMA (red line) two days ago. This also points to a weak market momentum.
Therefore, the price is likely to slide down significantly, with the first support at $0.2230. Beyond that point, $0.2000 is likely to provide the psychological support. However, heading into the weakened, the support could head lower to $0.1962. For the price to see meaningful upward action, it will need to stay above $0.2300. In that case, it is likely to encounter resistance at $0.2557.