Dogecoin is a leading meme coin that has provided good returns in the last two years, but now it is consolidating around the short-term support of $0.07. At the time of writing this post, DOGE was trading around $0.0777.
In the last 24 hours, Dogecoin has been down by more than 2%, and candlesticks are forming in the lower Bollinger Bands with bearish MACD and RSI. Read our DOGE predictions to know how the token will perform in the next few years.
The interesting part is that the DOGE candlesticks are forming around the support level, so if it bounces back, the price will face a resistance of around $0.10, which can be a good short-term gain, but it is also a risky trade!
Still, it is a good time to accumulate DOGE for the short term, but if it breaks the support, you will need to buy Dogecoin at a lower price for averaging.
Generally, investing in meme coins is not a great idea because most meme coins do not have popular use cases. These were created to mock the success of Bitcoin, but after they got popular, many new meme coins were released in the last two years.
On the weekly chart, Dogecoin is forming lower highs with support around $0.07. If it breaks the support, the next long-term support is around $0.05, but if it forms lower lows, Dogecoin might turn long-term bearish, which will not be a good sign.
This year, DOGE candlesticks had been forming in the lower Bollinger Bands, but it crossed the level in the third week of October, which suggested a positive momentum. After that, Dogecoin consolidated within a range holding the support.
Although market sentiments and social media news influence meme coins, any significant news can disrupt the technical and fundamental analysis. So, if you are active on social media and understand the investment of meme coins, then you can add DOGE to your watchlist for short-term trading.
Source: https://www.cryptonewsz.com/will-dogecoin-break-the-long-term-support-of-0-05-usd/