Why is Dogecoin price down today?

The price of Dogecoin (DOGE) is down today, mirroring the trend elsewhere in the cryptocurrency market.

Elon Musk triggers DOGE profit-taking

On 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: TradingView

Dogecoin’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: Coinglass

DOGE price outlook in July

From 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: TradingView

As 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.