Having lost bullish momentum in early 2024, the meme coin is losing control over critical support levels. The daily chart is reorganized as selling pressure increases, leading to the breakdown of the bearish channel in the DOGE price trend.
Starting from a psychological pitstop at $0.10, the decline has worsened, with the decline amounting to 18% over the past three weeks. Sharp decline in the largest meme coin by market capitalization warns of sectoral collapse.
Read our article DOGE price prediction Find out now if Dogecoin will surpass $0.10 in 2024.
DOGE price was supported at $0.082, will buyers come back?
With a clear downward channel history on the daily chart, DOGE price action warns of a trend reversal in early 2024. This breakdown puts at risk a 43% recovery in Q4 2023 and tests the bullish edge at $0.082.
A bearish candle is the bearish trendsetter for Dogecoin, which is down 9.47% this Wednesday. Moreover, the downfall is supported by a rapid increase in trading volume, increasing the likelihood of downfall.
DOGE price is currently trading at $0.0831 and is retesting the broken descending support trend line and is down 1.07% intraday. However, the decline remains above the $0.082 level and shows a long tail formation, reflecting the bulls’ attempt to sustain the rally.
technical indicators:
MACD indicator: The MACD line and signal line are falling below the 0 line due to the flash adjustment. The increasing strength of the bearish histogram supports a negative path and reflects increased selling.
RSI indicator: Buyers could prevent a downfall as Dogecoin holds above $0.082. However, the falling RSI line is very close to the oversold border, supporting a bearish view like the MACD indicator.
Will Dogecoin Survive This Fall?
Despite Dogecoin price rising to 10 cents, all optimistic efforts could soon be in vain due to lack of support in early 2024. Sentiment is showing a downward trend day by day as technical indicators and price pattern analysis predict a downward trend.
The last line of defense for DOGE price is the $0.082 support level and the 200D EMA at $0.070. Therefore, the viability of Dogecoin is currently limited to these levels. If a reversal occurs between these levels, it could bounce back to $0.10.
So long-term HODLers can continue to sit on DOGE longer and wait for a correction. On the other hand, short-term traders may find selling opportunities if important levels break.