Dogecoin price has experienced a sharp decline over the past week, losing more than 20% of its value. The popular meme cryptocurrency is currently trading at around $0.176, a major pullback from higher levels seen earlier this month.

Initially, DOGE broke below the $0.2000 price zone, triggering additional selling pressure. The decline continued as the price slipped under the $0.1850 level.

This was followed by breaks below $0.1680 and briefly under $0.1620. During this downward move, DOGE reached a low of $0.1440.

Since hitting this bottom, the price has begun to consolidate in a tight range. Some minor recovery has been observed above the $0.1500 mark, which represents the 23.6% Fibonacci retracement level of the recent downward movement.

Dogecoin price analysis: bulls struggle to break above $0.1625 as more losses emerge

The bearish sentiment appears strong in the short term. DOGE is trading below both the $0.1850 level and the 100-hourly simple moving average.

Technical analysis shows immediate resistance is located near the $0.1620 zone. This level also coincides with the 50% Fibonacci retracement of the drop from $0.1809 to $0.1440.

A bearish trend line has formed on the hourly chart. This trend line provides resistance around the $0.1680 level, creating another hurdle for bulls.

As the meme cryptocurrency continues to trade in a lower time frame, it appears to be approaching a crucial decision point that could determine the fate of the cryptocurrency.

Long-term chart patterns have caught the attention of analysts, with one particular formation standing out in the weekly timeframe of Dogecoin’s price.

Technical analyst Ali Martinez has identified an ascending channel, a pattern that shows a security trading within two upward-sloping parallel lines. According to Martinez, this pattern has been unfolding for nearly a decade.

The lower boundary of this channel sits at around $0.16, making it a crucial support level that many traders are keeping an eye on.

“If this support holds, we could see a rally towards $2, the price hitting the middle line of the long-term channel pattern,” explained Martinez.

However, there is also the possibility of further decline if support fails. If Dogecoin breaks below the $0.16 support zone, we could see further reductions in the coming weeks.

“Initial support below current levels exists at $0.150. This is followed by another support zone at $0.1450, close to the recent low. The main support level is positioned at $0.1420. A break below this could open the door for a drop towards $0.1350 or even $0.1250 in the near term.”

It seems that the cryptocurrency is at a decision point—either it will find support at the lower boundary of its channel and potentially reverse, or it will break lower and extend its bearish trend.

Technical indicators continue to favor bears in the short term. However, long-term chart patterns suggest a potential bullish case if key support holds.