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The Price of Dogecoin Will Continue to Fall as an Upward Move Gets Rejected

Dogecoin (DOGE) has experienced yet another tough patch, leaving investors scratching their heads and licking their wounds after what was originally intended to be a relief rally was cut short by a hard rejection to the upside at $0.1255. Because bulls were unable to break through this level, bears took control and drove the price action back down to lower levels. As a result, the downward pressure on the stock continues, with lower highs and lower lows, with the goal of reaching the two-week low of $0.1067 and the monthly S1 support of $0.1010.

If the situation continues to deteriorate, DOGE will fall below $0.1000

On the verge of breaching above $0.1255, the price of Dogecoin was on the verge of targeting $0.1400 in the process, hitting the previous week’s highs as well as the 55-day Simple Moving Average. After a relief rally that was prompted by some positive news out of Ukraine over the week, bulls were left high and dry after their side was willing to back down on a few requests. Russia, on the other hand, remained deafeningly silent, resulting in a big rejection on the topside at $0.1255.

In the case of DOGE, investors are anxiously hunting for support, which they may find below $0.1067, the last low from two weeks earlier. Expect some bullish activity to occur around that level, as it would make sense for investors to go long and position their limits below the $0.1004 historical level and the $0.1000 psychological level.

Nonetheless, that activity opens the door for bears to punch through, as those placed stops will attract bears, resulting in a falling-knife move with DOGE cracking below $0.1000 and tanking to $0.0700 at the monthly S2 support level, while the Relative Strength Index (RSI) continues to dwindle lower at a steady pace.

DOGE/USD weekly chart