Why DOGE Won’t Go Back to $0.17 Anytime Soon Despite Consolidation
Dogecoin (DOGE) has been one of the hardest hit coins in crypto this year. Investors seem to be deliberately avoiding the coins even due to an increased sense of risk. Although DOGE has consolidated after crashing two weeks ago, the upside potential remains significantly limited. Here are some highlights:
Technical and fundamental analysis shows that DOGE is bearish right now
The coin will struggle to regain its $0.17 support without a change in sentiment
We should expect a further decline in the short term
Data Source: TradingView
DogeCoin – What does the future hold?
Just a few weeks ago, $0.17 was seen as one of DOGE’s strongest support areas. Although the coin signaled increased volatility in 2022, it managed to hold off the bears at this price. But $0.17 was eventually lost, and since then DOGE has struggled to find enough demand to recover it.
From now on, the coin will need to increase by at least 100% to reach this threshold. We don’t think that will happen in the short term. If anything, fundamental and technical analysis shows that the meme coin is facing additional weakness.
From a technical standpoint, DOGE remains heavily pressured below $0.1, a key overhead resistance zone. Additionally, the RSI, an important momentum indicator, shows that demand for DOGE has slowed.
From a fundamental perspective, worries about slowing economic growth and worries about rising inflation could drive investors away from the same coins. These factors will push DOGE towards $0.04 in the near term.
Should you buy or short DOGE?
Well, the obvious short-term play here is to short the coin and wait for it to hit $0.04. However, due to the high volatility, make sure there is enough margin to handle a price spike of at least $0.09.
However, there could be a buying opportunity for long-term play. When DOGE drops to $0.04, interested buyers should rush in immediately.