Dogecoin DOGE/USD was heading toward another 5% decline on Monday after closing Sunday’s 24-hour trading session down 3.1%.
The crypto may be suffering a delayed reaction to news Tesla, Inc TSLA CEO and Dogecoin bull Elon Musk reneged on his deal to purchase Twitter, Inc TWTR for $44 billion. The deal looked bullish for Dogecoin, as many believed the crypto’s utility could be boosted if Dogecoin was added as a payment method on the microblogging website.
Dogecoin’s bearish continuation on Monday caused the crypto to negate the gradual uptrend DOGE had been trading in since June 30, although a downtrend has not yet been confirmed.
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The Dogecoin Chart: When Dogecoin fell below the $0.065 level during Monday’s 24-hour session, the uptrend was negated because the crypto printed a lower low under the July 5 low-of-day. If Dogecoin continues to plunge during Tuesday’s session, bullish traders can watch to see if the crypto forms a bullish double bottom pattern at the $0.062 mark, which Dogecoin reacted bullishly to on June 30.
- If Dogecoin is able to bounce up and close Monday’s session with a lower wick, the crypto will print a hammer candlestick on the daily chart, which could indicate a bounce is in the cards for Tuesday’s 24-hour session. Bullish traders will then want to see Dogecoin jump up above the July 8 high-of-day at $0.73, which would indicate the recent pullback was a bear trap.
- Bearish traders will want to see Dogecoin close the session near its low-of-day and fall below the June 30 lowest price to negate a possible double bottom pattern. The crypto has room in terms of its relative strength index to trade lower before bouncing.
- Dogecoin has resistance above at $$0.065 and $0.083 and support below at 6 cents and the 5-cent mark.
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