Dogecoin’s bullish strength waned on weak fundamentals
The cryptocurrency is yet to clear $0.07 successfully
DOGE risks further drop or consolidation below the resistance zone
Dogecoin’s DOGE/USD’s bullish rally has not only cooled off. Cracks are emerging that could push the token done once more. Minding that cryptocurrencies can often pull a surprise, investors would be better off selling the meme coin. This thesis explores why.
One of the fundamental drivers of Dogecoin recently was the anticipation of growth in use cases. Investors speculated that once Doge’s father, Elon Musk, acquires Twitter, he would accept its payments. The acquisition remains in limbo. Still, no major Dogecoin announcements or influencer mentions have happened lately.
The second factor for DOGE’s lack of bull strength is buyer exhaustion. Attempts to take Doge to $1 by Elon Musk failed terribly. At the bottom price of $0.05, DOGE attempted recoveries as other cryptocurrencies surged. As most tokens surged by double digits, the highest that DOGE hit was $0.078 at the end of June. That’s an upsurge of around 56% from the $0.05 bottom. Nevertheless, the token always crashed below the resistance at $0.07 each time it surged. The token currently trades at $0.069 as it consolidates lower.
DOGE fails another breakout at $0.07 resistance
Source – TradingView
Technically, DOGE is consolidating below the $0.07 resistance. The MACD line is close to the moving average and about to move below it. A bear case is strong as the price lacks bullish power. Investors should sell now before the price slides further. A break above the $0.07 resistance will confirm a bull case.
Dogecoin token could turn bearish after failing to break above the resistance. The cryptocurrency is suffering from a lack of buyers. A bear pressure will push the token down, and it’s time to sell.