Dogecoin turned extremely bullish for about a month in April and May, surging from around $0.05 until $0.74. That was very impressive for this new cryptocurrency, which brought to life the Shiba Inu coin as a response to Dogecoin. Although, since May 8, the situation in Dogecoin has been very disappointing and depressing for buyers.
DOGE/USD reversed down in the second week of May, although this cryptocurrency was finding some form of support at the 50 SMA (yellow) on the daily chart until the end of June and we saw a bounce from there. But, the 20 SMA (gray) which was providing support during the bullish trend in spring, now turned into resistance, confirming that the trend had shifted to bearish.
The bearish trend resumed after the rejection at the 20 daily SMA, and the 50 SMA and the 100 SMA (green) were broken. As a result, this cryptocurrency continued down, making lower lows in June and again in July. That showed that the situation in Dogecoin was really bad.
But the 200 SMA (purple) held as support on this time-frame chart despite being pierced, although we know that cryptos are very volatile, so don’t expect the price to respect these levels exactly to the pip. This moving average has been holding as support, while pushing the lows higher recently, but only marginally.
On the other hand, the highs have been getting lower as well, with the 50 SMA acting as resistance now and pushing the price down. So, the range is getting extremely tight for this DOGE/USD and a breakout is expected soon. The price action points to a bearish breakout, although if the sentiment in the crypto market continues to improve, we might see a surge higher as well. We might try to trade the breakout, selling if the 200 SMA gets broken or buying if the 50 SMA gets broken to the upside, which you can follow on our live forex signals page.