Will Dogecoin Recover After Breaking Below Critical Support?

Dogecoin Price Plunges to $0.1336 Amidst Bearish Signals

Dogecoin (DOGE) has fallen to $0.1336 on the 4-hour chart, approaching its lowest point since November 2024 ($0.1107). This decline reflects renewed selling pressure as the price nears a key historical demand zone. The Relative Strength Index (RSI) stands at 33.09, nearing oversold territory, while the Moving Average Convergence Divergence (MACD) remains bearish, with a histogram at -0.00129 and no bullish crossover in sight.

Analysis by KrissPax highlights a broken descending triangle from around March 20th. Following a brief rally past $0.200 after the breakout, strong selling pressure established a steep downtrend. Source: Krisspax (X) The subsequent pullback tested the previous breakout zone before a minor recovery to $0.180. Current volume spikes indicate active participation at these levels, with a clear bearish trend evident. A horizontal line connecting price approaches to this support level highlights consistent bearish behavior. A resistance level around $0.1770, observed last week, continues to hold. The price structure, volume activity, and downward pressure all contribute to the current bearish 4-hour chart.

Dogecoin's Current Market Outlook: Potential for Reversal?

According to TradingView data, DOGE's price has dropped over 18% in the last 24 hours, settling at $0.1336 and continuing to decline. This, coupled with technical indicators, suggests a potential inflection point, although bullish confirmation is currently absent. Source: TradingView

While the RSI of 33.09 is slightly above the oversold level of 30, indicating a prolonged bearish run, it remains below the 14-day moving average of 42.95, further reinforcing the bearish trend. A move above 40 could signal a potential recovery. The MACD also maintains a bearish outlook, with the MACD line at -0.01013 and the signal line at -0.00884, and a negative histogram value of -0.00129. A break below the current level could exacerbate the bearish trend. However, a leveling off of the MACD alongside a bearish RSI could attract buyers. Although current technical charts are negative, the oversold condition increases the possibility of a short-term price increase.

Tags: DOGE, Dogecoin