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Dogecoin’s bullish strength weakens on weak fundamentals
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The cryptocurrency has yet to successfully clear $0.07
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DOGE risks further downside or consolidation below the resistance area
Dogecoin’s DOGE/USD bullish rally has not only cooled down. Cracks are emerging that could push the coin done once again. Considering that cryptocurrencies can often come as a surprise, investors would be better off selling Mem Coin. This thesis explores why.
One of the fundamental drivers of Dogecoin recently was the anticipation of an increase in use cases. Investors speculated that once Doge’s father, Elon Musk, acquired Twitter, he would accept payments for it. The acquisition is in limbo. Still, there haven’t been any major Dogecoin announcements or impressive mentions recently.
Another factor in DOGE’s lack of bull strength is buyer exhaustion. Elon Musk’s attempt to take Doge down to $1 failed miserably. At a low of $0.05, DOGE attempted a recovery as other cryptocurrencies surged. DOGE had a high of $0.078 at the end of June as most of the coins increased in double digits. This is an increase of about 56% from the low of $0.05. Nevertheless, the coin always fell below the $0.07 resistance level every time it rose. The coin is currently trading at $0.069 as it is consolidating lower.
DOGE failed to make another breakthrough at the $0.07 resistance level
Source – TradingView
Technically, DOGE is consolidating below the $0.07 resistance area. The MACD line is close to the moving average and is about to move below it. A bear case is strong because the price lacks bullish power. Investors should sell now before prices fall further. A breakout of the $0.07 resistance level would confirm the bull run.
closing thoughts
The Dogecoin coin could turn bearish after it fails to break the resistance. The cryptocurrency is suffering from a lack of buyers. A bear pressure will push the coin down, and it is time to sell.