Dogecoin price is attempting to stabilize following a sharp correction that saw it fall over 18% from a May 10th high.

This move has seen DOGE retrace some of the gains it enjoyed during the impressive rally that began in early April.

Can Dogecoin manage to defend current levels or will we see further downside?

Dogecoin price has entered a critical phase as it attempts to consolidate following a recent correction that saw it lose ground rapidly.

After tagging a local high at around $0.26, which followed an impressive rally that began in early April, DOGE has dropped over 18%.

This correction has seen it retrace a good portion of the gains that began following a breakout above the $0.13 mark.

Dogecoin Surges Over 100% After Breakout

From this point, bulls were able to build strong momentum, pushing price up more than 100% in a month.

However, this move now appears to be stalling, and the market will be watching closely to see if Dogecoin can manage to defend current levels or if we could see further downside on the horizon.

According to top analyst Ali Martinez, the latest rejection has opened the door for a possible revisit to the $0.213 level.

This area previously acted as both a point of resistance and support, launching a rally that saw Dogecoin price more than double.

Chart Of The Day: Dogecoin Price Could See Further Downside

As a result, it may now serve as a magnet for price if bullish control continues to fade.

This view is supported by the fact that the Fib .786 level of the March-May rally sits at around $0.21, closely following the Fib .618 level of the April-May rally, which is currently at $0.20.

While sentiment remains cautiously optimistic, the next move will likely depend on whether bulls can manage to reclaim momentum or if we see DOGE break below its local range.

The coming days could decide the trajectory of the meme coin’s midterm trend, especially with volatility set to increase.

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