The price of Dogecoin (DOGE) is down today, mirroring the trend elsewhere in the cryptocurrency market.Elon Musk triggers DOGE profit-takingOn July 18, DOGE price fell 1.75% to $0.068, slightly underperforming the rest of the crypto market that dropped 1% in the same period.DOGE/USD daily price chart. Source: TradingViewDogecoin’s price decline came as a part of a broader correction from its local high of $0.075, established after Ripple’s partial win over the U.S. Securities and Exchange Commission (SEC) three days ago.The day before, DOGE saw a modest, albeit short-lived gains due to Elon Musk. Dogecoin price climbed 5.3% to $0.073 after the billionaire appears to have referenced the meme-cryptocurrency. Doges— Elon Musk (@elonmusk) July 17, 2023
Therefore, the July 18 pullback could be the result of traders securing short-term profits enabled by Musk. Furthermore, the downside move trapped enthusiastic bulls across crypto derivatives exchanges, leading to long liquidations worth $1.50 million in the past 24 hours, which likely intensified the selloff.DOGE total liquidation chart. Source: CoinglassDOGE price outlook in JulyFrom a technical standpoint, DOGE’s correction started after testing a resistance confluence comprising of its 200-day exponential moving average (200-day EMA; the blue wave in the chart below) and a multi-month descending trendline (black).DOGE/USD daily price chart. Source: TradingViewAs of July 18, DOGE/USD held above the resistance-turned-support of 50-day EMA (the red wave) near $0.068. Failing to hold it longer could mean an extended decline toward $0.066 in July, a support confluence comprising a horizontal line (purple) and an ascending trendline (black).Conversely, a bounce from the 50-day EMA could have DOGE price test the resistance confluence near $0.075 as their July upside target.Dogecoin price long-term outlookDogecoin has meanwhile painted what appears to be a “BARR Bottom” pattern on its daily chart.Related: Bitcoin price is ‘stuck’ at $30K — Here are 3 reasons whyBARR stands for Bump-and-Run-Reversal, a technical setup that traditional analysts perceive as a bullish reversal pattern when formed during a bear market. As of July 18, DOGE price appears to be in the pattern’s breakout stage, as illustrated below.DOGE/USD daily price chart. Source: TradingViewIf the pattern is confirmed by further gains, DOGE price can grow by as much as the BARR Bottom pattern’s maximum height. In other words, a bullish target o $0.088 by September 2023, up 30% from current price levels.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
