Dogecoin (DOGE) has come under significant bearish pressure following a failed attempt to break above the $0.1680 level earlier this week. As the meme coin currently hovers around $0.1550, shifting the market sentiment could trigger further losses.

Dogecoin: Bearish Flag Points To More Downside

Earlier in the month, Dogecoin showed some resilience as it defended the $0.1500 support level and attempted to push higher. However, this move faced resistance around the 100-hour Simple Moving Average at $0.1620, which stalled the coin’s recovery.

A successful break above the $0.1680 level was needed for traders to set their sights on the $0.1800 or $0.1900 handles. However, this attempt failed, leading to the formation of a bearish flag or rising channel on DOGE’s chart.

Typically, a bearish flag is a continuation pattern that suggests the potential for further losses if key support levels are breached.

As technical indicators continue to point toward weakness, analysts are watching closely to see if DOGE can hold its ground or if further declines will materialize.

The latest technical indicators show the MACD is deep in the red zone, while the RSI has fallen below the 50 mark.

Dogecoin: Next Levels Of Importance

Currently, DOGE is consolidating below the $0.1580 resistance level, with the next immediate resistance sitting at $0.1600. This resistance also corresponds to the 50% Fibonacci retracement of the recent price decline from $0.1694 to $0.1504.

A failure to break above this resistance could lead to another decline, potentially aiming for the $0.1500 support level. However, if the bulls manage to push the price higher, the rally could continue to the $0.1680 level, which serves as a key resistance.

On the support side, DOGE has now established a critical short-term support level around $0.1540. If the price dips below this mark, the next line of defense is located at $0.1520, followed by $0.1500, a psychological support level for traders.

Should the $0.1500 support level fail to hold, DOGE could experience a significant breakdown, potentially pushing the price down to the $0.1420 range or even lower.