Dogecoin Falls Below Key Support: Can $0.1318 Stand or Is a Deeper Dip Coming?

Dogecoin's price has fallen below its key support level of $0.1460, exhibiting bearish signals. Unless it reaches the next support zone at $0.1318, a continued downward trend is likely.

A bearish market breakdown is evident on Dogecoin's 4-hour chart, confirmed by a Break of Structure (BOS) pattern. The price may continue to fall unless market momentum shifts. The $0.1652 resistance level presents a significant hurdle for price growth; overcoming it requires substantial buying pressure.

Dogecoin, the ninth-largest cryptocurrency by market capitalization, has broken below a critical support level, fueling concerns about a further downtrend. A sharp 16.6% drop has pushed DOGE below $0.1376, significantly lower than previous all-time highs. This market breakdown indicates potential for further bearish movement unless strong support emerges.

Dogecoin Breaks Support: BOS Formation Signals Bearish Trend

Dogecoin's 4-hour chart shows a technical breakdown, having broken below previous swing low support levels. The BOS formation followed a lower high at $0.1920, where sellers dominated, preventing buyers from re-establishing higher price levels.

The market breakdown resulted in DOGE prices falling below the previous support at $0.1460, establishing $0.1318 as a significant short-term support level.

Dogecoin Tests $0.1318 Support, Faces Resistance at $0.1652

Currently, Dogecoin is attempting to find support near $0.1318. This level is crucial, representing both a recent swing low and previous price response patterns. Failure to hold this support could push the price towards $0.1250, potentially lower, as bearish momentum intensifies.

Strong resistance is encountered near $0.1652, a level with significant trading history. This resistance remains strong due to previous price consolidation, posing a major obstacle for bullish recoveries. Significant buying pressure is needed for DOGE to break above this zone and achieve meaningful price appreciation.

Trend Analysis and Market Implications

The 4-hour timeframe displays a bearish trend pattern, characterized by lower highs and lower lows. Bounce attempts have fallen short of previous highs, suggesting weak market interest and strong selling pressure above. The empty BOS space on the chart reinforces this bearish downtrend.

The likelihood of Dogecoin recovery is diminishing unless a new high is established in upcoming trading sessions. Market participants are adopting a cautious stance until price action demonstrates stability or a trend reversal.

Dogecoin Seeks a Bottom as Bearish Structure Persists

Technical traders and analysts will be watching for buy signals, potentially near support areas with increased volume. The current short-term bearish sentiment is expected to continue.

Crypto market volatility creates the potential for rapid price swings, driven by macroeconomic factors or news events. Dogecoin's technical structure suggests the cryptocurrency is still searching for a bottom.

Tags: Crypto market, cryptocurrency, Doge, Dogecoin