Dogecoin’s (DOGE) recent attempts to regain upward momentum have been abruptly halted as bearish forces reassert their dominance. After a brief rally, the popular meme coin is now under renewed selling pressure, with its price set to retreat toward the $0.1 mark. As negative momentum strengthens, the critical question now is whether Dogecoin can hold this crucial level or if further declines are imminent.
The recent shift in Dogecoin’s price dynamics has seen a sudden reversal. Key technical indicators are assessed to understand whether the $0.1 support level can withstand the pressure or if Dogecoin is poised for a deeper decline. As of the time of writing, Dogecoin is trading at approximately $0.1059, reflecting a 3.42% decline. The cryptocurrency boasts a market capitalization exceeding $15 billion, with a trading volume surpassing $535 million. Over the past 24 hours, DOGE’s market capitalization has seen a 3.57% decrease, while trading volume has dipped slightly by 0.83%.
On the 4-hour chart, Dogecoin has displayed strong downbeat momentum following its failure to break above the bearish trendline. The price is now attempting to fall below the 100-day Simple Moving Average (SMA). If DOGE successfully breaches this key level, it could begin a more pronounced downtrend, potentially driving the price down to the next crucial support at $0.0914. Additionally, the Relative Strength Index (RSI) on the 4-hour chart has slipped below the 50% mark, currently resting at 41%. This decline highlights growing bearish momentum and suggests that selling pressure could intensify.
On the daily chart, Dogecoin shows significant negative movement below the 100-day SMA by printing two bearish momentum candlesticks. This bearish surge reflects strong selling pressure and negative market sentiment, increasing the likelihood of DOGE reaching the $0.0914 target soon. The 1-day RSI indicates that pressure on DOGE has returned, with the signal line’s upward attempt cut short at 56% before falling below the 50% mark, now resting at 47%, thus intensifying selling pressure and highlighting a growing pessimistic sentiment for the digital asset.
Exploring the significance of the $0.0914 support level and its potential to withstand bearish pressure reveals that if the price reaches this level and breaks below, the crypto asset will likely move downward toward the $0.0745 support. Should the price fall through this level, it may drop to test the $0.0559 support mark and potentially lower to explore additional support levels. However, if DOGE reaches the $0.0914 support range and bulls stage a comeback, the price could climb toward the $0.1293 resistance level. Breaking through this resistance might enable the cryptocurrency to continue rising, targeting the $0.1491 resistance range and other higher levels.
