Dogecoin (DOGE) Drops 4% to $0.2222 as Bitcoin Retraces. Will DOGE revisit the $0.20 level amid a Double Top breakdown?

As Bitcoin price pulls back toward the $102,000, meme coins are seeing a steeper correction with broader crypto gains pausing.

Dogecoin price has dropped nearly 4% today.

Now trading at $0.2222, the meme coin sees its third consecutive red day following a 35% rally last week. Will this short-term pullback push DOGE to retest the $0.20 psychological level?

Dogecoin Price Analysis Signals $0.20 Retest In Short-Term

After a strong rally, pushing to the $0.25 psychological resistance, Dogecoin entered a consolidation phase.

However, the loss of momentum during the holding pattern has led to the formation of a bearish Double Top pattern.

The neckline of the pattern, at $0.2225, previously acted as a support, triggering a bounce on May 11. But with the recent price action, DOGE has now confirmed the breakdown below the neckline with a decisive four-hour candle close at $0.2185.

A minor recovery of 1.56% appears to be testing the breakdown point. From the Double Top pattern, further lows could test the $0.20 psychological price level.

This also increases the risk of a breakdown below the 50-EMA, which is currently at $0.2091.

Additionally, the four-hour RSI has dropped from the overbought to the midline during the consolidation and breakdown phase. This signals decreasing momentum, increasing the possibility of a deeper correction.

If buyers fail to hold the $0.20 support, DOGE may decline further to test the 200-EMA around the $0.18 psychological level.

Conversely, a decisive four-hour candle close above $0.2225 would cancel the bearish pattern and could propel DOGE toward the $0.2506 level, increasing the likelihood of a breakout.

Downfall In DOGE Fuels Long Liquidations

Amid the broader crypto market retracement, data from Coinglass shows that over $500 million in crypto long positions were liquidated in the past 24 hours.

Among the major cryptocurrencies, Dogecoin price has seen a particularly sharp spike in long liquidations. In the last four hours alone, $3.38 million in DOGE positions were liquidated, and over the past 24 hours, the total reached $21.72 million.

This surge in long liquidations may suggest a stronger presence of short-term bearish sentiment in the crypto derivatives market.

As crypto prices continue to fluctuate, traders should be prepared for the possibility of further liquidations, especially if market trends take an unexpected turn.