- Dogecoin price fell by 15% from the week prior.
- DOGE has critical levels of liquidity and supports lying near $0.070.
- Invalidation of the bearish outlook is a breach above $0.076.
Dogecoin price confirms last month’s bearish bias report as the notorious meme coin takes a market plunge. Now that the sell-off is underway, traders are forced to question where the bears will aim.
Dogecoin price takes a dive
Dogecoin price has confirmed the worrisome technicals reported earlier in the month, on December 19, that the world’s favorite dog coin is down 15% from the previous week. Smaller timeframe trends point south, while macroeconomic inflation reports suggest risk assets are especially vulnerable. If the bears have their way, the Dogecoin price might revisit the $0.060 territory.
Dogecoin price currently auctions at $0.075. DOGE appears to be hovering just above key liquidity zones established On November 9 and 23. On both days, the bulls were successful in their mission to project DOGE to higher price levels. The November 9 low at $0.070 prompted a 45% rally into the $0.094 area. On November 23, bulls printed a higher low at $0.071, driving a 56% rally into the $0.110 zone days later.
At the time of writing, the DOGE price trades between the 100- and 200-day simple moving averages (SMA). The coiling of smaller time frames suggests DOGE will soon embark on another explosive move. A breach below $0.071 could induce a freefall sweep-the-lows event with bearish targets at $0.060 and $0.051. Dogecoin price will decline by 30% if the bears are successful.
DOGE/USDT 1-Day Chart
Dogecoin price has yet to pierce the critical $0.070 level of support; thus, traders should consider keeping their minds open for an alternative bullish scenario. A breach above the 100-day SMA at $0.076 could enable a countertrend spike targeting the 50-day variant at $0.0972. The DOGE price will rise by 20% if the bulls are successful.