DOGE/USD Exhibits a Deep Dive – Can Double Bottom 0.1790 Provide Support Today? - Forex News by FX Leaders
Dogecoin - DOGE/USD Chart

DOGE/USD Exhibits a Deep Dive – Can Double Bottom 0.1790 Provide Support Today?

Posted Tuesday, June 22, 2021 by
Arslan Butt • 2 min read
The DOGE/USD closed at $0.179650, after placing a high of $0.280290, and a low of $0.179650. Dogecoin extended its losses, dropping for the 7th consecutive session on Monday, amid a broad sell-off in the crypto market, which was driven by the continued crackdown on miners in China and the sudden change of the Fed’s tone, which served as the main catalyst for the current weakness in the cryptocurrency market.China called a meeting of its main and leading Industrial, Commercial and Agricultural Banks and the payment service provider Alipay. The representatives of the financial institutions were reminded of the ban imposed by the Chinese government on the provision of services related to cryptocurrencies. Furthermore, China stated that the government has intensified its crackdown on the mining of cryptocurrencies. According to a report from a newspaper, Global Times, the authorities in the southwestern Chinese province have ordered a stop to crypto mining, resulting in many bitcoin mines in the Sichuan region being shut down. This news also put further downward pressure on the cryptocurrency market, causing the Dogecoin prices to shift to the downside.

The American racer Stefan Parsons crashed at NASCAR, in his Dogecoin-sponsored car. Interestingly, the accident of the Chevrolet Camaro coincides with the recent collapse of the price of DOGE. It might not be linked, but the meme coin saw a hard decline in value shortly after the crash at the NASCAR race.

Meanwhile, the US dollar was also weak across the board, as the investors booked profits and waited for the testimony of Fed President Jerome Powell. As a result, the US Dollar Index fell on Monday, reaching 91.83 – this should have capped further losses in the DOGE/USD, as there is a negative correlation between the two currencies, but this didn’t happen. Instead, DOGE continued its downward momentum for the 7th consecutive session.

Dogecoin - DOGE/USD Chart

DOGE/USD Daily Technical Levels

Support             Resistance
0.267524           0.290274
0.254827          0.300327
0.244774          0.313024
Pivot Point:      0.277577Technically, Dogecoin is also in a weaker spot, and trading in the coin is dramatically bearish. It has dropped from the 0.20839 support level to 0.1793. A bearish breakout at 0.1793 could lead the DOGE/USD pair towards the next support level of 0.1028. The RSI and MACD support a strong selling trend in the DOGE. Therefore, a breakout at 0.1793 might extend the selling bias until the 0.1028 mark. Today, the idea is to remain bullish over the 0.1793 support level and bearish below. Good luck!

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