Should you buy DOGE at the current $0.06 retracement?

• DOGE faces resistance at the $0.07, retraces to $0.06

• Coinbase commerce adds DOGE payments 

• Elon Musk faces $258 billion lawsuits for an alleged DOGE pyramid scheme

Dogecoin (DOGE/USD) has remained subdued since its promoter Elon Musk was sued for $258 billion by an investor. The plaintiff accused the billionaire and his companies of manipulating the value of the meme coin for selfish gains.

DOGE is currently trading at $0.06812 after a 5.01% decline in the past week, according to data from CoinMarketCap. The bearish market sentiment has aggravated the self-off. However, the growing adoption of the token for payments seems to be giving it a boost.

Coinbase Commerce adds support for DOGE payments

DOGE showed some recovery after Coinbase Commerce included it as supported payments in its services. The addition is part of the exchange’s move to provide instant and free payments to the managed merchants. The announcement has kept the meme token afloat amid a bearish pressure that has seen it register a significant retracement.

The monthly outlook shows a price decline of 16% since trading at $0.081. Equally, DOGE is one of the tokens hard hit by the crypto sell-off, having shed off 64% year-to-date. Will DOGE record a trend reversal, or will it face more bearish pressure?

DOGE finds resistance at $0.07

Source: Tradingview

From the daily price outlook, DOGE found resistance at $0.07 on June 27 before retracing to $0.06. The technical indicators show that the token is still bullish, with the 20-day moving average (black line) joining the support.

Some consolidation is expected to be seen at the 50-day moving average (green line) before any bullish momentum can set in. The RSI reading is 48 shows that the token has not reached an oversold zone and could decline further. DOGE remains bearish below the $0.07 support, turned resistance level. A buy entry will only be recommended above the resistance.

Summary

DOGE remains mainly bearish, with the RSI showing a possibility of potential lower levels. A buy can only be recommended once the token surge clearly above the $0.07 resistance level, with the confirmation of a bullish price signal.