Dogecoin price analysis 12 Jan: Could $0.15 support hold?
Dogecoin remains in a bear grip
Dogecoin is roughly down about 80% from its all-time high of $0.73, even though it has seen strong backing from billionaires Elon Musk and Mark Cuban. Recently, Cuban defended his support for dogecoin and said that it “was good for spending and better than a lottery ticket”. He also said that bitcoin is not an inflation hedge and “never will be”.
A Twitter user, Pradeep K, recently pointed out that the Tesla Model Y payment page code was showing dogecoin as a payment option. This boosted sentiment among doge fans, who speculated that Tesla could soon accept dogecoin as a method of payment for purchasing the vehicle. However, there has been no confirmation from Tesla on this issue yet.
The Mozilla Foundation, which had previously tweeted that it will accept cryptocurrencies such as bitcoin, ether and dogecoin, recently backtracked on its decision, after Jamie Zawinski, a co-founder of Mozilla, blasted the decision.
Could dogecoin go up if it gets support from Tesla? What do charts suggest? Read the DOGE price analysis to find out.
Dogecoin price technical analysis: weekly chart
DOGE’s price is witnessing a battle between the bulls and the bears near the critical $0.15 support for the past few days. The Doji candlestick pattern this week suggests indecision among the bulls and the bears.
This uncertainty will tilt in favour of bears if the DOGE/USD pair slips and closes below $0.15. That will indicate the resumption of the downtrend. The pair could then drop to $0.06, completing a 100% retracement of the entire bull move that started in April of last year.
Alternatively, if the price rises from the current level and breaks above the 20-week exponential moving average (EMA), it will suggest that bulls continue to defend the support aggressively and that will bring the large $0.35 to $0.15 range into play.
What is your sentiment on DOGE/USD?
If the price sustains above the 20-week EMA, the bulls will attempt to push the price to the overhead resistance at $0.35.
Dogecoin price technical analysis: daily chart
DOGE’s price broke and closed below the $0.15 support on 10 January, but the bears have not been able to build upon this advantage. The bulls are attempting to push the price back into the range.
If buyers drive the price above the moving averages, it could trap the aggressive bears, resulting in a short squeeze and a possible rally to $0.21. Conversely, if the price turns down from the moving averages, the bears will again try to start a new downtrend.
The downsloping moving average and the relative strength index (RSI) in negative territory indicate an advantage to the bears. A break and close below the 4 December intraday low could open the doors for a possible drop to $0.10.
Dogecoin: Buy or sell this week?
Dogecoin’s price analysis shows that the bulls are attempting to defend the support at $0.15. If they push and sustain the price above the moving averages, it will suggest a change in the short-term trend. Conversely, a break and close below $0.13 could signal the start of a new downtrend.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.