• Dogecoin price action is caught in a downtrend channel.
  • Favorable moving averages have turned into resistance.
  • A new test of the September 7 low is the profit target for bears in DOGE.

Dogecoin (DOGE) price action has been on a downtrend channel for nine consecutive days. Sellers are looking to make a profit of around $ 0.20, which matches the September 7 low.

Dogecoin price tends to drop and may lose 16% of its value

Dogecoin price has been moving in the downtrend channel since September 7th. At the start of the DOGE trend formation, the price action could have tipped further higher with the help of the 55 and 200 day simple moving averages (SMA). In the meantime, price action has trended lower, and the 200 and 55 day SMAs have now turned into resistance. DOGE bears now have two very favorable things in their corner to bring down the prices.

Dogecoin buyers are trying to push the price up, however, with several tests of the upper trendline of the downtrend channel. Salespeople hold on and defend their short-term vision with great success. As interest in DOGE bulls begins to wane, expect sellers to take more charge of the price action and pull the price down towards $ 0.20. This level was the September 7 low and will be the target level for DOGE bears to make profits on their short positions, if not all of their profits.

DOGE / USD daily chart

Expect buyers to get to that $ 0.20 bar to start building long positions in the transfer of sellers reserving profits. If that level doesn’t hold, at $ 0.19, the S1 monthly support level is waiting to do its duty. In a wider price range, DOGE bulls might opt ​​for a fade trade to get long.

Suppose the sellers are stubborn and leave no opportunity for buyers to enter. In that case, expect a surge from S1 towards $ 0.15. This level coincides with the low of June 22.