Dogecoin Faces Pressure: Price Drops 9.88% After Bearish Kumo Breakout on 4-Hour Chart

• Dogecoin has been falling at an alarming rate, 9.88 on a 4-hour chart after a Kumo break at the bearish side, which proves that the currency has a strong downward trend.
• The price is around $0.165 where the supports are at $0.1612 and short-term resistance is at $0.1753.
• DOGE has fallen 17.7 percent in seven days, which indicates that there is continuing selling pressure and the Ichimoku Cloud restricts a recovery.

The Kumo bearish breakout caused significant selling pressure on Dogecoin, which had a significant drop on the 4-hour chart. The action led to the nearly 10 percent decline, which signified the change in the short-term mood within the market. 

The asset is trading at the current price of$ 0.165, which is 17.7% below its value in the last seven days. The market data depict the continued feeble state bordering the lower limit of the market, with the Ichimoku Cloud becoming the counteraction mark. This new development highlights the way short-term traders have been moving positions with the varying technical factors.

Cloud Resistance Holds as Downtrend Deepens

The Kumo region has been a major resistance point that limits the efforts of Dogecoin to regain its lost market share through the sharp fall. The price action never managed to close above the top boundary which verified the pressure to the downside. It is important to note that following the breakout, the asset showed a 9.88 percent decline, briefly trading within a tight band.

Transitioning from this setup, the support level stands at $0.1612, where price stability has temporarily formed. However, upward recovery remains capped near the $0.1753 resistance, limiting any immediate rebound potential. This compression between support and resistance suggests consolidation, as market participants reassess risk exposure following the steep correction.

Decline Extends Across Broader Sentiment

Across the weekly timeframe, Dogecoin’s 17.7% decline highlights the continued bearish influence following the Kumo rejection. Momentum indicators have shown limited strength, while short-term volume remains modest compared to prior surges. Furthermore, 0.051587 BTC, or roughly 1.8%, reflects its proportional market influence relative to Bitcoin, which continues to drive sentiment across major altcoins.

As the market digests this movement, the current 4-hour structure shows compression beneath the cloud, with no immediate signs of trend reversal. Technical observers are now monitoring whether the asset can sustain its footing above $0.1612 while volatility remains subdued.

Market Structure Shows Potential for Stabilization

The recent Kumo rejection indicates the ascendancy of sellers, but short-term stabilizing actions are becoming more noticeable around local lows. The current trend is still on the defensive, but the small 24-hour price variation of $0.1612 -$0.1753 can outline the price activity in the near future. This structure remains in focus as traders analyze the way the existing structure develops around these critical levels.