The price of Dogecoin (DOGE) is down today, mirroring trends elsewhere in the cryptocurrency market.
Elon Musk triggers profit taking on Dog
On July 18, DOGE price fell 1.75% to $0.068, slightly lower than the rest of the crypto market which fell 1% during the same period.
Dogecoin’s price drop is part of a broader correction from local highs of $0.075 following Ripple’s partial victory over the U.S. Securities and Exchange Commission (SEC) three days ago.
The day before, DOGE saw modest, albeit short-lived, gains thanks to a boost from Elon Musk. Dogecoin prices rose 5.3% to $0.073 after the billionaire appeared to reference the meme-based cryptocurrency.
Governor
— Elon Musk (@elonmusk) July 17, 2023
Therefore, the July 18 pullback could be the result of traders taking short-term profits on Musk’s behalf.
Additionally, the downward move trapped enthusiastic longs on crypto derivatives exchanges, leading to $1.5 million worth of long liquidations in the past 24 hours, which may have exacerbated the sell-off.
July Dog Price Outlook
From a technical perspective, DOGE’s correction started after testing a confluence of resistance formed by its 200-day exponential moving average (200-day EMA; blue wave in the chart below) and a multi-month descending trendline (black).
As of July 18, DOGE/USD is holding above the resistance of the 50-day moving average (red wave) around $0.068. Failure to hold for longer could mean an extension of the decline to $0.066 in July, with a confluence of support including the horizontal (purple) and ascending trendline (black).
Conversely, a rebound from the 50-day MA could see DOGE price test the resistance confluence near $0.075 as its upside target for July.
Dogecoin price long-term outlook
Meanwhile, Dogecoin has charted what appears to be a “BARR bottom” pattern on its daily chart.
Related: Bitcoin Price Is Stuck at $30,000 — Here Are 3 Reasons Why
BARR stands for Bump and Run Reversal, a technical setup that traditional analysts consider to be a bullish reversal pattern when formed during a bear market. As of July 18, DOGE price appears to be in the breakout phase of the pattern, as shown in the chart below.
If the pattern is confirmed by further gains, the DOGE price can rise as much as the maximum height of the BARR bottom pattern. In other words, by September 2023, the bullish target is $0.088, which is a 30% increase from the current price level.
This article does not contain investment advice or recommendations. Every investment and trading action involves risk, and readers should conduct their own research when making a decision.
Author: Deepchain DCNews
Compiled by: Sister Shen
Twitter: DeepChain
Twitter：https://twitter.com/DeepChainUS
