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Dogecoin Shifts Bearish, Downside Risks and Forecasts

Steve Miley trader
Updated 30 Dec 2022

The meme coin, Dogecoin (DOGE) neutralised a more positive tone (from the early November and early December bullish price action), with the mid/late December breakdown and the negative activity seen since the holiday season has set up a more bearish prospect into January and Q1 2023.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Dogecoin Positive Price Action and Setup Neutralised

Dogecoin is a meme coin created in 2013 as a joke by two software engineers and has become hugely popular since 2020. In our earlier December report on DOGE we highlighted that Dogecoin price prospects were still bullish, in both the short- and intermediate-term, but losses sustained since that report has seen a more negative shift, having negated the more positive theme. The initial push lower through the November swing supports at 0.0706/0713 to 0.0699 has since been reinforced by the failure back down from below resistance at 0.0801, to again push lower this week through 0.0699.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

This price action has now established a more bearish outlook on both a short- and intermediate-term view and leaves a negative price projection into at least January 2023, possibly for Q1 2023.

Source: IG.com

Bearish Threats and Upside Challenges

The late December surrender of the recent bear market low at 0.0699 now aims for a bearish extension to test the October swing low at 0.0551 into January. Through here into Q1 2023 would set a still more bearish theme and then target the June 2022 bear cycle lows at 0.0498/0.0492. Surrender here would establish an even more bearish bias to aim down towards  Fibonacci extension targets at 0.0415 and even 0.0324 with 0.0400 a psychological target between these levels.

Recovery Challenges

A push back above resistance at 0.0801 would be needed to ease bearish pressures, with a recovery through resistance at 0.0956 required to set a more positive theme again


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.