Dogecoin price failed to follow Bitcoin, which has experienced a 30% increase since June 8th. The cryptocurrency favored consolidation above a short-term support level. Failure to sustain support increases the likelihood that the prank token will test the May 19 low of $0.195.
Although Bitcoin crossed the psychologically significant $40,000, Dogecoin price did not capitalize on the BTC rally for a major rally. This was a disappointing response to the most significant event since May 23 low. Such a pullback indicates that DOGE is looking for a different catalyst or more likely bearish.
Dogecoin price has suggested many potential patterns since the May 19 crash, but none have had the staying power to reach completion. Dogecoin price today is showing a complex top formation extending to May 23 with a clear support line DOGE currently holds. This level is the most important hurdle to test $0.195.
A daily close below $0.287, the low of June 13, will free the price of Dogecoin to start a decline to the low of May 19. The May 23 low of $0.246 will be a notable support, but the accumulated downward momentum during the complex top process should best counter this.
After the May 19 low, Dogecoin price has a clear path to $0.195, which represents a 36% drop from the support level. After this shift, DOGE could target the 200-day simple moving average (SMA) at $0.143.
To break the bearish outlook, Dogecoin price would need a daily close above the value-weighted average price pegged at $0.353. DOGE must surpass the 50-day SMA at $0.403 and the 2021 ascending trendline at $0.426 to start a credible bullish outlook.
According to current IntoTheBlock In/Out of the Money Around the Price (IOMAP) data, Dogecoin price is dominated by resistance between $0.318 and $0.337, where 196,420 addresses hold 15.36 billion DOGE.
IOMAP shows no support (on money addresses) up to $0.263, warning of a bearish outlook in the short term.
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