Dogecoin Can Recover If DOGE Extricates Itself From This Level

Dogecoin, a dog-shaped cryptocurrency released in December 2013, has been caught in an extended bearish momentum as it continues to struggle to cut its losses and regain its upward trajectory.

  • Dogecoin has already lost 91.8% of $0.73 ATH
  • The $0.057 index is crucial for DOGE to recover its losses
  • Crypto meme at risk of hitting prices as low as $0.0140

The cryptocurrency meme that soared in popularity – thanks to billionaire promotion and Elon Musk’s “Dogefather” – reached an all-time high on May 8, 2021 when it peaked at $0.73.

But DOGE has now lost 91.8% of that value. At the time of publication, according to tracking from KoenigkuAltcoin is trading at $0.060.

The nightmare for the Shiba Inu-inspired token began in December of last year when it dropped below $0.173.

Since then, digital assets have been struggling, hitting new lows thus far and matching yearly lows during June and September.

DOGE price action analysis

The recent and continuous bear market put the dogecoin below the 20 and 50 exponential moving average (EMA) which is a metric used to measure the direction of the trend over a period of time.

Source: TradingView

The DOGE bulls are being kept in check by the trendline reversal in Dogecoin and failed to maintain the high liquidity of $0.0607 over the past days.

If this results in a pullback below $0.057, the altcoin will be in an extended bullish move highlighted by a test of the $0.048-$0.052 range in preparation for a small bull entry.

In the opposite direction, if Dogecoin sustains above $0.057, it could test the $0.062 resistance area. This simplifies the thesis of the cryptocurrency price trend meme.

Dogecoin can recover its losses if DOGE can extricate itself and move above the $0.057 mark.

A word of warning before accumulating Dogecoin

The current price of Dogecoin is very attractive to investors looking to boost their cryptocurrency holdings.

But caution should be exercised when considering a large DOGE build-up as a breakdown of the $0.0471 support is likely to lead to a sharp drop that will serve as a continuation of the current bearish move.

Should such a scenario occur, Dogecoin could look to see a 42% drop, dropping all the way to a trading price of $0.0267.

The problem doesn’t stop there for the altcoin, as it could still drop, losing $69 of its value to trade at $0.0140.

Investors are then advised to pay close attention to the price movement of the digital asset and to keep a watchful eye on critical support levels for the cryptocurrency.

DOGE market cap at $7.9 billion on the daily chart | Featured image from Adventure, Chart:

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