Price Analysis

Dogecoin Testing Descending Channel Again, Has the Elon Effect Just Faded Away?

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Dec 15, 2021

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Highlights

    Dogecoin after a notable spike is on the verge to re-enter the same channel, dropping to its initial levels

    The dwelling price of the asset signifies the DOGE price could yet again follow a descending trend while rebound remains sceptical

The crypto space was trying to sustain under the trembling situation and this was when a huge boost propelled the Dogecoin price above $0.2 levels. It was none other than Elon Musk himself who jumped in the ring to save the drowning DOGE price. However, as each time, the surge remained a short-lived one, and currently on the verge of getting back to its initial levels. 

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As like every time, Elon Musk’s magic faded within no time as the Dogecoin price broke out of a multi-day parallel channel with respect to support and resistance areas. The downtrend is expected to continue until the price enters the channel and hits the average zones. However, a flip could be very much uncertain, yet the pullback towards the $0.14 levels appears visible. 

  • Dogecoin price is on the verge to retrace back down to the 0.236 Fibonacci retracement levels close to $0.16 levels before moving back up
  • The trading volume has depleted since the spike due to Elon Musk’s mentions and hence it could be pretty worrisome as the downtrend may continue.
  • The RSI is being hold up by a trendline which may come back down to re-test.
  • The upside trajectory may be contradict if in case the price comes back into the parallel channel

Collectively, the Dogecoin price again displayed the requirement of an external factor to boost itself. However, it always remained short-lived as the bears tend to extract their profits quickly as the DOGE price gains some bullish momentum.

And hence it tends the price to hover around similar levels yet again. Also, the past events have created a huge gap between the asset and the traders. Therefore, regaining belief in traders in the need of the hour in order to under a sustainable rally in future. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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