How Low Can DOGE Go?
Dogecoin (DOGE) price is showing clear signs of weakness after a significant price surge over the past two days. On Monday and Tuesday combined, the price of DOGE fell by more than 21%. Dogecoin has risen sharply since October 10, with an increase of more than 360% during the period. Dogecoin reached $0.4834 on December 8, the highest price since May 2021. However, strong downward pressure has since emerged.
How low can the price of Dogecoin go?
The current technological landscape suggests that DOGE is at a critical juncture. Cryptocurrency Analyst Kevin (@Kev_Capital_TA) shared Taking his view on X via the daily DOGE/USD chart, he commented:
“Dogecoin is in full collapse mode. Everyone holding a triangle is saying DOGE is breaking out, but as Doge’s lead analyst, I can confirm that on a macro linear chart, Doge is actually in a macro gold pocket The biggest resistance point. I warn everyone, this is not the place to get too excited, a major pullback is on the table.”
Kevin has previously highlighted the “Golden Pocket” – the area defined by key Fibonacci retracement levels (0.703 and 0.786) in the $0.47 to $0.60 range – as a key resistance area. This area needs to be conquered decisively for DOGE to have There is a chance to reach an all-time high. The recent economic downturn shows that this resistance has been strong.
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Dogecoin price recently fell below the uptrend line that had supported its rise over the past month, adding to the bearish scenario. The failure of this trend line indicates a shift in market dynamics. When a price chart falls below this line, it usually indicates that the buying pressure that once drove the asset higher is waning. Traders may view this breakout as a cue to take profits, exit a long position, or consider opening a short position.
Another technical indicator supporting the bearish outlook is the relative strength index (RSI) on the daily chart. The RSI has been trending lower over the past month, even as DOGE continues to make higher highs.
This classic bearish divergence – where price action and momentum indicators move in opposite directions – often precedes a reversal. The recent break below the supporting price trend line, coupled with the RSI line breaking out of its own uptrend, confirms Momentum may have shifted decisively to the downside.
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As for potential downside targets, Kevin’s chart suggests that DOGE could drop to the $0.29-$0.26 area.
Meanwhile, a closer look at Fibonacci retracement levels on the daily chart can provide a road map of possible support areas. Currently, the 0.5 Fibonacci retracement level at $0.39 appears to be a key battleground. Successfully holding this level could halt the bearish trend or even set the stage for a decline. rebound Above the broken trend line.
However, a daily close below the 0.5 Fibonacci level could open the door for a deeper pullback. In this case, if the selling momentum accelerates, DOGE may target the 0.382 Fib at $0.31 or even the 0.236 Fib at $0.21 as the next potential support level. On the lower time frames, the 4-hour 200 EMA is now the key support to hold.
Featured image created using DALL.E, chart from TradingView.com
