The cryptocurrency Dogecoin (DOGE/USD) has been under pressure lately. The meme token remained on a bearish momentum from mid-August to the start of September, with the trendline forming a descending triangle with the support at 0.267.

Nonetheless, DOGE/USD broke past the descending trendline, ushering in a new bullish momentum that lasted from September 1 to September 6. In our previous outlook, we projected the bullish move after a break above the descending trendline.

Now, DOGE/USD is trading below the support of 0.267. At the time of writing, the cryptocurrency was trading at 0.256.

DOGE/USD Flash Crash

DOGE/USD was one of the crypto tokens to fall furthest on September 7, when all other cryptocurrencies faced a steep flash crash.

The cryptocurrency fell from a high of just below 0.32 to a low of 0.21, breaching the support area, which has now become a resistance. The resistance is now becoming a barrier against potential upsides, as can be seen from the 4-hour price chart below:

DOGE/USD – A Technical Outlook

Dogecoin 4-Hour Chart Analysis

From the 4-hour chart above, we can see that DOGE/USD is trapped and consolidating below the resistance of 0.267. Looking across the crypto markets, most tokens were recovering, albeit slower, or consolidating from the previous flash crash. Some tokens, like Theta and Stellar Lumens, already had a bullish move underway, after a bounce from the support.

Unlike its peers, which are showing bullish moves, DOGE/USD is trading below the previous support, which has now become resistance, and it is facing a lot of resistance to the upside. Bears are now keeping the meme token below the 0.267 resistance, with potential downsides possible.

DOGE/USD Trade Analysis and Idea

Given the overall bounce in crypto tokens from the previous crash, I continue to hold a medium-term and long-term bullish view of DOGE/USD. I do not consider the price crash to be a turn to bearish markets for the meme token, as prices can quickly bounce off after the steep fall.

However, I see a potential short-term bearish move from the current level in DOGE/USD, as prices continue to face resistance at the 0.267 level. But I would not consider short trades at this stage, unless bearish signals form at the consolidation area.

I would take a buy trade if DOGE/USD broke above the 0.267 resistance and upon confirmation via price action trading signals. I would set my targets at the previous highs of about 0.31, 0.33 and 0.348. Good luck!