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Dogecoin Slumps 14%, DOGE/USDT Bulls Looking at Elon Musk to Catalyze Demand

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Is the Shiba-Inu scared of crypto bears? Thus far, Dogecoin is performing quite dismally.

The lack of conviction among would-be bulls means price action is at the mercy of unrelenting sellers, reading from the daily chart.

Dogecoin Market Performance

The deluge of sell orders is pushing DOGE holders to the edge. They are on the cusp of another meltdown that would crash optimistic buyers, putting to an end talk of a “great DOGE revival.”

Still, traders can take advantage of a recovery, riding the resulting upswing and clipping on those precious gains now that DOGE buyers appear to be positioning themselves in lower time frames.

From the daily chart, DOGE/USDT prices are tracking lower, pinned below the middle BB and bearish.

Dogecoin Price Daily Chart for July 13

At the time of writing, DOGE is down 14 percent week-to-date, sinking six percent on the last trading day. Besides, trading volumes are thin, pointing to low participation levels, making DOGE bulls’ efforts flat and unconvincing.

Nonetheless, the recent draw-down isn’t as steep as May and June, even though the downtrend is clear. Instead, there are higher highs relative to the lower BB as BB squeeze, pointing to possible accumulation.

This will only come through if there is a sharp upswing from spot rates. On the other hand, if DOGE caves down below $0.20, the real possibility of prices crashing towards June 2021 lows at around $0.15 will be highly likely.

At the moment, there are hints of accumulation. As per volumes trackers, buyers appear to be buying in blocks. Yesterday, there was a notable spike in participation where 6X the average volumes changed hands.

DOGE/USDT Price in a Bull Flag

On Trading View, another trader, Fibonacci-Signals, observes that DOGE/USDT prices are inching lower inside a descending channel.

Fibonacci-Signals--Dogecoin

His view is that bulls can begin positioning themselves for longs once there is a breakout to the upside.

The bull flag, visible in the 4HR-chart, can only materialize if there is a breakout to the upside.

Following losses of July 12, DOGE bears appear determined to pour cold water on any attempts.

Therefore, unless there is a satisfactory close above $0.23 and $0.25 to the upside, risk-on DOGE/USDT traders can stay on the sidelines until there is a clear trend.

Dogecoin ABCD Pattern; Back to the moon?

At the same time, another trader is confident of another big swing for Dogecoin.

Based on DOGE/USDT price action in the daily chart, the analyst picks out an ABCD pattern formation.

Rajshakha--Dogecoin

This is the Elliot Waves pattern that could likely propel Dogecoin back to $0.80 and, better still, $1 in the long term.

DOGE/USDT candlestick arrangement in the daily chart marks out $0.30 as a critical resistance line which bulls need to break for a clear trend definition to the upside.

DOGE and Elon Musk

On YouTube, Serg Tech is equally positive, more so referring to the fundamental aspect of Dogecoin.

For example, while he believes Dogecoin has support at spot rates and could surge in the days ahead, gains will be supported by Elon Musk’s comments.

Recently, the billionaire’s comments on Ethereum and Bitcoin’s scaling troubles and endorsement of Dogecoin’s utility pumped prices.

The more Dogecoin finds utility; the more bulls will double down, reinforcing supports.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!

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