Dogecoin (DOGE) Sinks To $0.08 Amid Relentless Bear Pressure

Overview

Dogecoin has experienced a significant decline, dropping below the $0.10 mark against the US Dollar. This downturn has led to consolidation of losses, with potential hurdles ahead at key resistance levels. The current market trend poses challenges for Dogecoin as it navigates through bearish signals.

Dogecoin’s Recent Price Movement

Dogecoin’s price began a fresh decline after closing below a critical level. Following this, it fell under the $0.10 threshold, leading to a series of downward movements. The currency has been trading below both the $0.10 level and the 100-hourly simple moving average, indicating a persistent bearish trend.

A key bearish trend line has formed, establishing resistance at approximately $0.0950 on the hourly chart of the DOGE/USD pair. This trend line could further complicate any potential recovery. If the price remains under $0.0880 and $0.0850, it may face further losses. Recently, a low was noted near $0.080, with the price demonstrating bearish signs.

Despite a brief recovery wave above the $0.0840 mark, which saw the price climb beyond the 23.6% Fibonacci retracement level, Dogecoin is still trading below the critical resistance levels mentioned earlier. Immediate resistance is observed near the $0.090 level.

For any bullish momentum to materialize, the price would need to breach the $0.0950 resistance level and the associated trend line. A notable resistance level to watch is near $0.0985, which aligns with the 61.8% Fibonacci retracement of the downward move from the recent swing high to the low. A close above this resistance could potentially indicate a price movement towards the $0.1050 level, with further gains possibly reaching the $0.1120 mark.

Potential for Further Decline

Should Dogecoin’s price fail to ascend above the $0.10 level, further declines are likely. Initial support is situated near the $0.0850 level, with the next significant support at around $0.0820. The primary support level remains at $0.080. If the price breaches below the $0.0750 support level, it could lead to a further slide, potentially approaching $0.0720 or even $0.070 in the near term.

Technical Indicators

• Hourly MACD: The MACD for DOGE/USD is gaining momentum in the bearish zone, suggesting ongoing downward pressure.
• Hourly RSI: The RSI for DOGE/USD is currently below the 50 level, further indicating bearish sentiment.

From author

The situation surrounding Dogecoin reflects broader trends in the cryptocurrency market, where various factors contribute to price fluctuations. The ability of Dogecoin to reclaim the $0.10 level is crucial, as it serves as a psychological barrier for traders and investors. The established resistance levels and support points will be critical in determining the short-term trajectory of Dogecoin.

Impact on the crypto market

• Dogecoin’s decline below $0.10 may influence market sentiment, leading to increased caution among traders.
• The established resistance levels could deter bullish momentum, preventing a recovery in the near term.
• Key support levels will be closely monitored, as breaches could trigger further selling pressure across the market.
• The overall bearish trend in Dogecoin may reflect similar movements in other cryptocurrencies, impacting investor confidence.
• The ongoing price action may attract the interest of technical traders looking for entry points based on support and resistance analysis.