- Dogecoin co-founder, Jackson Palmer, left the crypto industry, leaving Doge dead in the water.
- Stronger Dollar to weigh on DOGE/USD, pushing it to lower below $0.1685.
- Today’s idea is to place a sell limit at $0.1675 to target $0.1440.
The DOGE/USD coin pair has failed to stop its overnight declining streak and still flashing red during the early European session on the day. At this time, the Dogecoin price is trading near $0.162937 with a 24-hour trading volume of $1,389,709,915. Dogecoin price forecast remains bearish for a number of reasons. Let’s discuss…
If you are interested in trading DOGE/USD with forex robots, check out our guide.
Jackson Palmer Left Doge Dead in the Water
Dogecoin dropped by 8.34% in the last twenty-four hours. However, the decline in the Dogecoin could be attributed to the reports suggesting that the Dogecoin co-founder Jackson Palmer left the Crypto industry. Right after this, Ethereum co-founder Anthony Di Iorio also told his plans to leave the crypto industry. This becomes the critical factor that kept the cryptocurrencies lower, including Dogecoin & Ethereum.
DOGE/USD Retrace to 0.1640 as Musk Tweets Bring Some Life Back
On the positive side, Tesla and SpaceX CEO Elon Musk did not refrain from supporting meme cryptocurrency dogecoin and continued to tweet about the Dogecoin. Musk has changed his profile image on Twitter to include an image of the Shiba Inu dog representing Dogecoin.
Musk also tweeted that his son is “holding his Doge like a champ.” Right after this move, the price of Dogecoin got a slight boost, but the gains were temporary and shedding all of its weekend gains. However, the declines in the DOGE price could also be associated with a stronger U.S. dollar.
Stronger Dollar Weigh on Dogecoin Price Forecast, Pushing it Under $0.1685
The broad-based U.S. dollar maintained its early-day upward rally and remained bullish near its more than three-month highest levels on the day as investors turned worried about a raging coronavirus variant that threatens the outlook for a global economic recovery. So, the upticks in the U.S. dollar were seen as one of the key factors that kept the DOGE/USD coin under pressure.
DOGE/USD 4-Hour Chart
Dogecoin Price Forecast – Technical Outlook: Doge Violates $0.1685
Dogecoin price forecast is bearish on Tuesday as the pair has already violated the 0.1685 level. This support level was extended by a triple bottom pattern on the 4-hourly chart.
Below this, the DOGE/USD has odds of continuing the selling trend until the next support level of 0.1445 level. The oscillator tool Stochastic is holding in a selling zone below 20, demonstrating an oversold scenario.
Typically, the oversold market triggers profit-taking insecurities and bulls takeover for a while before further sell-off. If this happens today, the DOGE/USD may bounce off until the support become a resistance level of 0.1685.
Bullish crossover of 0.1685 level can lead Doge price towards next resistance level of 0.1855 and 0.2045. Alternatively, the support prevails at 0.1441 and 0.1164 levels today.
The DOGE/USD price forecast remains bearish because of the 50 periods EMA (Exponential Moving Average – Red Line). The 50 EMA is weighing on Doge and extending resistance at 0.1675 level. Consequently, the forex trading participants may look for placing a sell limit at 0.1675 to target 0.1440. All the best.
Looking to buy or trade crypto now? Invest at eToro!
Capital at risk
