The price of Dogecoin (DOGE) fell today, mirroring trends elsewhere in the cryptocurrency market.

Elon Musk triggers DOGE, take profits

On July 18, the price of DOGE fell 1.75% to $0.068, slightly lower than the 1% drop in other cryptocurrency markets over the same period.

DOGE/USD daily price chart. Source: TradingView

Dogecoin’s price drop is part of a broader correction from the local high of $0.075 established after Ripple’s partial defeat of the U.S. Securities and Exchange Commission (SEC) three days ago.

The previous day, Dogecoin (DOGE) had seen a modest but short-lived rally on the back of a boost from Elon Musk. The price of Dogecoin rose 5.3 percent to $0.073 after the billionaire appeared to mention the meme cryptocurrency.

Therefore, the July 18 pullback may have been the result of traders taking short-term profits from Musk.

Additionally, the downside move has trapped enthusiastic bulls on cryptocurrency derivatives exchanges, resulting in $1.5 million worth of long liquidations over the past 24 hours, which may have exacerbated the sell-off.

DOGE total clearing chart. Source: Coinglass

July DOGE Price Outlook

From a technical standpoint, DOGE started correcting after testing the confluence of resistance formed by the 200-day exponential moving average (200-day moving average; blue wave in the chart below) and the multi-month downtrend line (black).

DOGE/USD daily price chart. Source: TradingView

As of July 18, DOGE/USD was holding around the 50-day moving average (red wave) resistance-turned-support level of $0.068. Failure to hold for longer could mean further declines in July to $0.066, a confluence of support formed by a horizontal line (purple) and an ascending trend line (black).

Conversely, a bounce off the 50-day SMA could see DOGE price test a confluence of resistance near $0.075 as its July upside target.

Dogecoin Price Long-Term Outlook

Meanwhile, Dogecoin has drawn what appears to be a “BARR bottom” pattern on its daily chart.

Related: Bitcoin Price ‘Stuck’ at $30,000 — Here’s 3 Reasons Why

BARR stands for Bump-and-Run-Reversal, a technical setup that traditional analysts consider a bullish reversal pattern to form during a bear market. As of July 18, DOGE price appeared to be in a breakout phase of the pattern, as shown in the chart below.

DOGE/USD daily price chart. Source: TradingView

If the pattern is confirmed by further gains, the price of DOGE could rise as much as the maximum height of the BARR bottom pattern. In other words, by September 2023, the bullish target is $0.088, which represents a 30% upside from current price levels.

This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.