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- Dogecoin price is eyeing a breakout below this key support on the daily chart.
- Critical 200-DMA support at $ 0.1732 remains on sellers’ radar.
- DOGE bulls continue to face strong resistance at the 21-DMA barrier.
Dogecoin (DOGE / USD) adds to Saturday’s pessimistic momentum after the July 9 bounce was again rejected at higher levels.
The dog-themed currency showed new signs of life on Friday and rose about 8% after Tesla Inc. founder Elon Musk tweeted in favor of Dogecoin, citing that Bitcoin and Ethereum were pursuing a system of multilayer transaction, but their transaction rate was “slow” and their cost “high”.
Musk’s comment came after a Dogecoin investor and YouTuber Matt Wallace tweeted: “Reminder: Dogecoin update is coming soon.”
In Sunday trading so far, the DOGE price is closing in on the two-week low of $ 0.1946 reached earlier this week, following sluggish crypto market sentiment.
DOGE / USD: Tech Setup Indicates Re-Test of 200-DMA Critical Support
The daily meme-coin chart shows that price is expected to record the fifth consecutive weekly loss, following the 21-day moving average (DMA) resistance at $ 0.2443 since early June.
The highs, so formed, have kept the bears alive and moving, as they wait for a powerful catalyst to initiate a further decline, especially after the sluggish prices of the past week.
Such price action implies that DOGE bears are likely to retain control as long as the price remains below it. As a result, sellers remain on track to challenge the powerful 200-DMA upside support, now at $ 0.1732.
The uptrend line support at $ 0.2011, however, could test bearish commitments before heading towards the 200-DMA cap.
The 14-day Relative Strength Index (RSI), a leading indicator, continues to point south while wallowing in the bearish area, indicating there is more room for the downside.
Adding credibility to the downside, a bearish cross was confirmed over the said period on July 7 after the 50-DMA broke through the 100-DMA from above.
DOGE / USD: Daily chart
Only a daily close above the DMA 21 could reverse the short-term bearish momentum by rekindling long interest.
DOGE buyers would then target the 50-DMA down to $ 0.2922. Additionally, the round number of $ 0.3000 could limit bullish traders.
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