Dogecoin (DOGE) The price points to the monthly S2 support level at $0.0869. A breakout of the price action could trigger a pullback towards $0.0700.
Dogecoin price declined during the ASIA PAC session and the uptrend stopped. DOGE seems to have surrendered to a negative mood at the moment after feeling that the FED will take a more ‘hawkish stance’ to control inflation. These expectations regarding the FED created a negative atmosphere in the markets in general and as a result caused a decline. The DOGE price, on the other hand, showed that there is still a 22% risk of decline as a result of these decreases in negative weather.
Dogecoin Price Drop Risk Increased
Dogecoin price seemed to have recovered from the negative mood after the positive news from Shanghai and managed to attract investors’ attention again. However, the news from Shanghai doesn’t seem to have kept its effect for long, and the risk of falling prices, or ‘tail risks’ as it is often used in the crypto world, is on the agenda again. We would like to state that this risk of decline is not only valid for DOGE, but has the capacity to affect the market in general.
Dogecoin price On the other hand, it was approaching the monthly S2 support level at $0.0869. If this level is not held successfully, a more significant drop could occur which could result in a 22% correction towards $0.0700. A further drop to $0.0500 may be possible, but for this to happen, another catalyst will be needed, such as the return of dollar strength reflected in EUR/USD’s new lows.
As long as the S2 support level is in play, any short-term sideways price action will not be intimidating and will generally help the chart maintain its strength. When the markets start to calm down and the bullish theme emerges when things are finally stable, DOGE price It could climb above $0.0944 and keep the dream of reaching the magic $1 mark, gaining 14% in the process.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.