Dogecoin Still Bearish Despite Cuban’s Campaign. But, Watch for a Breakout
Dogecoin jumped on Monday, much to the excitement of fans and influencers, who were keen to see the meme coin escape the two-week bearish momentum. The Monday gains were fueled by campaigns by investor Mark Cuban, titled “Dogemania,” that aimed to increase the adoption of the cryptocurrency.
Nonetheless, Monday’s gains on the DOGE/USD were not enough to fuel the meme coin out of the sustained slump. At the time of writing, the cryptocurrency was seen recovering, and it had gone up by 1.34% in the preceding 24-hours. However, it was trading at a low of 0.2779, which was below the high of 0.286 reached the previous day. Still, technical pointers show that the momentum in DOGE/USD is bearish.
DOGE/USD – A Technical Analysis
Dogecoin 4-Hour Chart Analysis
DOGE/USD is clearly trapped in a descending triangle, which supports a bearish momentum at the moment. Looking at the 4-hour chart, the meme coin is sitting at a major support level of 0.2676, which makes it interesting, as I would be keen to know whether a break below this is possible.
DOGE/USD Scenario Analysis
Scenario 1: Buy Idea
I am looking at a possible break above the descending trendline on the 4-hour chart. A break above the descending trendline would open a new bullish momentum on DOGE/USD. Upsides should target the area around 0.33 and even further at 0.348.
As to whether DOGE/USD will break to the upside depends on further influencer mentions, anticipated upgrades and adoption. I will keep tabs on these developments and watch the technical levels for a potential break above the descending trendline, before buying DOGE/USD.
Scenario 2: Sell Idea
A sell trade on DOGE/USD will only be possible if it breaks below the support at 0.2676. For sell entries, I would watch for the formation of key bearish trade signals, after a sufficient break below the support for sell entries.
Sell trades should target levels at around 0.2566, and further down at 0.23888. However, considering that most cryptocurrencies are currently on an uptrend, I would observe any key market developments that could cause a surge in DOGE/USD and invalidate a sell trade. Thus, I would take profits along the way, to minimize risks and avoid being caught up in a swift change of the DOGE/USD trend. Happy trading!
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