- Dogecoin price eyes a break below this key support on the daily chart.
- The critical 200-DMA support at $0.1732 remains on the sellers’ radars.
- DOGE bulls continue to face stiff resistance at the 21-DMA barrier.
Dogecoin (DOGE/USD) is adding onto Saturday’s downbeat momentum after the July 9 rebound faced rejection once again at higher levels.
On Friday, the canine-themed currency showed fresh signs of life and rallied about 8% after Tesla Inc.’s founder, Elon Musk, tweeted in support of Dogecoin, citing that Bitcoin and Ethereum were pursuing a multi-layer transaction system, but their transaction rate was “slow” and cost “high.”
Musk’s comment came after a Dogecoin investor and YouTuber Matt Wallace tweeted out: “Reminder: The Dogecoin update is coming soon.”
DOGE/USD: Technical setup points to a retest of critical 200-DMA support
The meme-coin’s daily chart shows that the price is set to book the fifth straight weekly loss, following the 21-Daily Moving Average (DMA) resistance at $0.2443 since early June.
The lower highs, thus formed, have kept the bears alive and kicking, as they await a strong catalyst to begin another downswing, especially after last week’s sluggish price action.
Such a price action implies that DOGE bears will likely retain control so long as the price holds below the latter. Therefore, sellers remain on track to challenge the powerful ascending 200-DMA support, now at $0.1732.
The rising trendline support at $0.2011, however, could test the bearish commitments before heading towards the 200-DMA cap.
The 14-day Relative Strength Index (RSI), a leading indicator, continues to point southwards while wallowing in the bearish zone, indicating that there is more scope for the downside.
Adding credence to the move lower, a bear cross got confirmed on the said time frame on July 7 after the 50-DMA pierced through the 100-DMA from above.
DOGE/USD: Daily chart
Only a daily closing above the 21-DMA could negate the bearish momentum in the near term by reviving the buying interest.
The DOGE buyers would then target the downward-pointing 50-DMA at $0.2922. Further, the $0.3000 round number could limit the bullish traders.