Elon Musk’s favorite cryptocurrency has fallen by 25% in 3 days

Last week, the price of the DOGE token dropped significantly, canceling the previous bullish breakout of the long-term downward resistance line — the cryptocurrency fell by 25% in 3 days. Analysts emphasized that in order to preserve the possibility of a rebound, it is necessary for Dogecoin to remain above $ 0.060.

Just like the weekly timeframe, the daily chart of the token describes bearish price prospects. According to experts, last week’s drop suggests that the previous growth was corrective, and now a downward movement has begun.

At the time of writing, DOGE is trading above the horizontal support area at $ 0.062. It is quite possible that it has formed a double bottom pattern for the price in June. Although this pattern is considered bullish, there are no other signs of a bullish reversal.

The RSI index is rising, but it is still below the 50 level, which indicates that the trend is uncertain. As analysts explained, the future outlook for DOGE will be determined by whether the digital asset breaks below $ 0.060 or breaks out of the resistance line. In the event of a bullish breakout, it is expected to grow by 140% to the next resistance at $ 0.15. A bearish breakout could lead to a 42% drop to $ 0.036.

According to the results of technical analysis of the weekly chart, in May 2021, the token reached an all-time high of $ 0.739 and has been moving under a descending resistance line since then. In the process of this decline, DOGE dropped to a low of $ 0.049 in June 2022.

Analysts are convinced that if the Dogecoin development team makes significant technological improvements to its ecosystem, such as increasing its security or scalability, the asset may become more attractive to investors and crypto enthusiasts.

The CEO of Tesla and X has long been one of the biggest influences on the price of Dogecoin. Elon Musk has openly recognized DOGE as one of his favorite digital assets, apart from BTC. Recently, the price of DOGE skyrocketed by more than 20% after rumors that the billionaire might introduce the virtual asset as a means of payment on the X platform.