Dogecoin (DOGE) price is set to start up its downtrend again as price action slips below the long-term red descending trend line from August 2021 again as geopolitical news and the looming Fed rate decision is weighing heavily on cryptocurrencies. The monthly S1 support level at $0.12 is the only nearby support to keep losses limited. Once that gives way, expect an accelerated sell-off towards $0.094, slipping below $0.1, and holding 30% losses.
Dogecoin price looked to be starting the week in a promising fashion as DOGE price booked gains on Sunday. But sentiment quickly deteriorated after a series of events on Monday morning as the geopolitical situation between Russia and the US worsened and market participants decided to stay on the sidelines ahead of the FED rate decision later in the week. As bears smell their opportunity to drive DOGE price lower, a break below the red descending trend line from August just adds arguments to their case to go in big for a short squeeze lower.
DOGE price will see the S1 monthly support at $0.12 as the first and only support element near-term as it held the dip on January 22. A break below would see lots of stops from bulls triggered and give bears a free ride towards $0.094, which was the low of April 14 and a pivotal point in the uptrend. Expect bears to book profits at that level, as it would constitute another 30% profit from entry at the red descending trendline near $0.13.
As previously mentioned, the S1 support level could still refrain DOGE price action from shedding additional value. When that level holds, expect markets to perceive this as proof that bullish presence is there and set the scene for a false dip followed by a breakout above the red descending trend line again. Bulls would then flock into the DOGE price reaction and ramp up price action back towards $0.16 or even $0.19, if current headwinds fade as quickly as they came.
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