Dogecoin (DOGE) rate updated a year’s minimum, scaring investors

Dogecoin made a bearish break of the 360-day pattern

The Dogecoin project Dogecoin is one of the most recognizable “calling cards” of the crypto market and has many fans. Although it appeared in 2013 as a joke coin, many already believe that DOGE has outgrown mere meme status.

As the results of technical analysis of the 3-day chart show, the price made a bearish break of the 360-day ascending support line in early June.

Breaks of such long term structures indicate that the previous trend has ended and a new trend has started, in the opposite direction.. In the case of DOGE, that means that the price may have started a new long-term downward movement.

After that breakout, the meme coin rebounded from the $0.060 horizontal support area.

Source: TradingView

Despite the rebound, the RSI is giving bearish signals. The RSI is an impulse indicator used by traders to assess whether the market is overbought or oversold and helps determine whether an asset is worth accumulating or selling.

A values above 50 and an uptrend indicate that the bulls still have the upper hand, and vice versa.

Let’s remember that Elon Musk, one of Dogecoin’s biggest supporters, has been sued in an insider trading lawsuit over the token.

DOGE forecast: how long will the rebound last

A look at the shorter daily timeframe confirms the bearish mood of the weekly chart. The main reasons for this are related to Dogecoin price dynamics and RSI.

DOGE has been declining since April 3.

DOGE has been declining since April 3, moving under a downward resistance line. Most recently, on June 10, the price rebounded from that level.

While the DOGE price has since rebounded, it is still trading below the confluence of resistance levels formed by the $0.065 resistance area and the resistance line (red circle). Thus, the trend is considered bearish until the price makes a bullish breakout.

In tandem with the downtrend resistance line, the RSI Index also follows the downtrend line (red line). Similarly, the trend here is also considered bearish until the price makes a bullish break. If another bounce occurs, the DOGE could fall to $0.050.

If another bounce occurs, the DOGE could fall to $0.050.
Source: TradingView

Despite this bearish outlook, a break above the resistance line would mean that at least the short-term trend is bullish. In that case, the price may rise to the next resistance at $0.073.

In that case, the price may rise to the next resistance at $0.073.

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