Dogecoin (DOGE)’s latest attempt to regain upward momentum came to an abrupt halt as bearish forces reasserted their dominance. After a brief rallyThe popular meme coin is once again under selling pressure, with its price expected to drop to around $0.1.
As the negative trend continues to grow, the question arises whether Dogecoin will be able to maintain this critical level or whether further declines await us.
In this article, we analyze the recent change in Dogecoin price dynamics as bearish momentum returns. We will look at the sudden reversal, evaluate key technical indicators, and assess whether the $0.1 support level will hold the pressure or if Dogecoin is poised for a deeper decline.
At the time of writing, Dogecoin is trading at around $0.1059, down 3.42%. The cryptocurrency boasts market capitalization exceeding $15 billion, with a trading volume exceeding $535 million. Over the past 24 hours, DOGE’s market capitalization fell by 3.57%, while trading volume slightly decreased by 0.83%.
Market Sentiment: Bears Tighten Grip on Dogecoin
On the 4-hour chart, Dogecoin showed robust downside momentum after failing to break above the bearish trendline. The price is now trying to break below the 100-day basic moving average (SMA).
If DOGE manages to break through this key level, it could initiate a more pronounced downtrend, potentially pushing the price down towards the next key support at $0.0914.
Additionally, on the 4-hour chart, the Relative Strength Index (RSI) fell below 50% and currently stands at 41%. This decline underscores the growing bearish momentum and suggests that selling pressure may intensify.
On the daily chart, Dogecoin is showing a significant negative move below the 100-day SMA, printing two bearish momentum candles. This bearish growth reflects robust selling pressure and negative market sentiment, increasing the likelihood of DOGE reaching the $0.0914 target soon.
Finally, the 1-day RSI shows that the gloomy pressure on DOGE has returned. The attempt to rise above the signal line was broken at the 56% level before it fell below 50%, currently at 47%, intensifying the selling pressure and growing bearish sentiment towards the digital asset.
0.0914 in Sight: Will This Key Support Level Hold?
Significance study $0.0914 support level and its potential to withstand bearish pressure reveals that if the price reaches this level and breaks below, the cryptoasset will continue to decline towards the $0.0745 support. If the price breaks through this level, it could fall to test the $0.0559 support level and potentially fall to explore additional support levels.
However, if DOGE reaches the $0.0914 support level and the bulls start to come back, the price could rise towards the $0.1293 resistance level. Once it breaks through this resistance, cryptocurrency could continue to rise, potentially heading towards resistance at $0.1491 and other higher levels.
Featured image from iStock, chart from Tradingview.com
