DOGE/USD Price Analysis – June 20, 2023

Daily Price Outlook

DOGE, the popular meme-based cryptocurrency, has been facing a downward trend, hitting its lowest point since June 2022 at $0.0623 per DOGE. If the current bearish market conditions persist, DOGE’s price could face a significant test.

Investors are closely monitoring the critical support level at $0.048, which represents the lower boundary of the current price range that DOGE has been trading within. A breach of this crucial level would bring DOGE to its lowest point in two years. Interestingly, there are mixed expectations for DOGE’s future trajectory.

While a further decline seems possible given the ongoing downward trend, it is also expected that the market may witness a rebound followed by a sharp crash, which is characteristic of the volatile nature of the crypto market.

These upcoming weeks will be crucial for DOGE holders and could determine the cryptocurrency’s direction.

In a recent Twitter thread, Glassnode co-founders Yann Allemann and Jan Happel, under the account name Negentropic, pointed out an intriguing relationship between the Nasdaq-100 index (NDX) and Bitcoin (BTC).

Historical data suggests that when the NDX experiences a slowdown, as is currently the case, cryptocurrencies tend to thrive, indicating a rotation of investments into higher-risk assets.

Crypto analyst Chris Burniske, formerly of ARK Invest, supported this observation and elaborated on the potential sequence of high-risk asset rotation.

He suggested that the movement could involve a shift from NDX to Bitcoin, Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and eventually non-fungible tokens (NFTs).

DOGE/USD Price Chart – Source: Tradingview

DOGE/USD – Technical Analysis

Dogecoin is currently in a consolidation phase, dancing between the upper limit of $0.0625 and the lower limit around $0.0580. After briefly hitting a low at $0.0529, it bounced back and is now grooving around $0.06171.

The coin has already completed the 23.6% and 38.2% Fibonacci retracement levels at $0.058 and $0.060, respectively. Recently, it encountered a resistance level at $0.06260, aligned with the 50% Fibonacci retracement level.

The Relative Strength Index (RSI) is sending mixed signals, fluctuating above and below the 50 level, while the Moving Average Convergence Divergence (MACD) indicates a neutral market vibe near the zero level.

If Dogecoin breaks above the $0.0626 level, it may hit the 61.8% Fibonacci retracement level at $0.0645, with potential targets at $0.067 and $0.0711.

On the downside, support is expected around $0.058 or $0.0540. So, keep an eye on the $0.0626 level, as it sets the rhythm for the party, with sellers below and an upward trend above.