Dogecoin Price Prediction: Buy the Dip or Sell the Rip?

The Dogecoin price outlook has been bearish and this stance seems to linger for a while. The altcoin has been treading along a falling trendline. Its total market capitalization is at $25.58 billion.

Dogecoin Price Action

Dogecoin was started as an internet meme. However, the meme coin muscled its way up and is currently the eighth-largest cryptocurrency. The Dogecoin community thinks that the meme coin has potential.

Most people compare Dogecoin to Bitcoin especially since Tesla’s CEO, Elon Musk, hinted at his preference for Doge. Elon Musk, the self-proclaimed “Dogefather” has been responsible for pumping the Dogecoin price. This happened after Musk started sharing memes related to the cryptocurrency on his social media.

Bitcoin has been majorly used as a store of value. However, it can now be used in real estate transactions. The use of Dogecoin as a payment method could push its price higher. 

The surging coronavirus cases saw most cryptocurrencies including Dogecoin edge higher. This is because the Federal Reserve remained dovish as the economy struggled to recover. The Dogecoin price reacts to Bitcoin’s overall performance. This is due to the correlation between Bitcoin and other cryptocurrencies.

Doge Technical Outlook

Dogecoin price has been bearish since the start of August. The altcoin has been trading downside in the last two days. It has been lingering around the $0.2000 level for some time. Doge hit an intraday low of $0.19310.

At the time of writing, it dived 3.84% at $0.195511. On the two-hour chart, it was trading below the 25 and 50-day exponential moving averages (EMAs) signaling a bearish trend. 

A move below its intraday low could lag its price below the psychological level at $0.1900. However, the bearish trend could correct itself and surpass the psychological level at $0.2000. If this happens, the Dogecoin price could move higher to trade within the 50-day EMA at $0.2050.

Dogecoin Price Chart