Dogecoin Does Not Have Potential For A Strong Move Upward, Analyst Says

[Ben Graham]

Following the general trend of the crypto market, the Dogecoin price has been stuck in sideways action for a while now. Mostly, there has been more dominance toward the downside compared to any opportunity for a recovery, and this has pushed it toward critical support levels. Amid this, the meme coin has shown a lot of weakness and the overall trend remains generally bearish in favor of further price decline.

Why Dogecoin May Crash Instead Of Recover

With the Dogecoin price already struggling, crypto analyst RLinda believes that the bearish action may continue to dominate for a while. She points to the fact that the price has since been consolidating between two major levels at $0.1763 and $0.118, but there have not been any major moves yet. This shows that it leans bearish as opposed to bullish and could trigger a drawdown.

Looking into the technical side of things, the crypto analyst shows that there is nothing that suggests that the Dogecoin price can see a move upward. So far, there have been lower highs and lower lows being formed, a trend that is more bearish for the price. While there have been slight recoveries, sustainability has remained a problem as momentum tends to wane as quickly as it emerges.

For now, RLinda points to the possibility of an upward move to take out liquidity, but there is no indication that this move will be sustained as well. The analysis points to the growing liquidity pool at $0.188, which emerged after the local consolidation back at the start of the month. Naturally, the price could move up quickly to absorb the liquidity at this level, but could move back down quickly as well.

The reason why the Dogecoin price could retrace from the climb is the fact that this liquidity at $0.188 could prove to be resistance to the uptrend. In this case, the mounting bearish pressure could quickly take over, and this could trigger a quick reversal. In this case, the crypto analyst believes that the Dogecoin price could crash back down from $0.188 to $0.165 before finding support.

From here, the two major levels to watch are the support at $0.1763, which needs to hold for any recovery to happen. Then, $1.188 serves as the resistance that needs to be broken for the breakout to be sustained. “If the market does not allow the price to rise, it is worth watching the support level of 0.17635,” RLinda stated. “Consolidation below this level will confirm the false breakout of the lower level and may trigger a decline.”