Dogecoin (DOGE) Faces Renewed Pressure - Bulls Brace for Potential Downturn

Dogecoin's recent weakness signals trouble for optimistic traders as bearish momentum builds.

Technical Breakdown

The meme coin's price action shows clear vulnerability - trading volumes dropped while resistance levels held firm. Bulls who positioned for another rally now face the reality of broken support zones.

Market Sentiment Shift

Remember when everyone thought dog-themed coins were the future? The charts suggest otherwise. Institutional money continues to favor Bitcoin and Ethereum, leaving speculative assets like DOGE exposed to retail sentiment swings.

Risk Assessment

Current patterns indicate potential for further declines unless buying pressure emerges quickly. Trading volumes need to triple just to match last month's averages - not exactly inspiring confidence for a quick recovery.

Sometimes the market's way of saying 'sit this one out' comes through loud and clear. Another reminder that in crypto, what goes up must come down - especially when it started as a joke.

Dogecoin Price Trims Gains

Dogecoin price started a fresh decline after it closed below $0.2620, like Bitcoin and Ethereum. DOGE declined below the $0.260 and $0.2550 support levels.

The price even traded below $0.2450. A low was formed NEAR $0.2430, and the price recently attempted a recovery wave. There was a move above the 50% Fib retracement level of the downward move from the $0.2701 swing high to the $0.2431 low.

However, the bears were active near the $0.260 resistance and the 61.8% Fib retracement level of the downward MOVE from the $0.2701 swing high to the $0.2431 low. Besides, there is a bearish trend line forming with resistance at $0.2570 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.2550 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is near the $0.2550 level. The first major resistance for the bulls could be near the $0.2570 level and the trend line.

The next major resistance is near the $0.260 level. A close above the $0.260 resistance might send the price toward the $0.2780 resistance. Any more gains might send the price toward the $0.2840 level. The next major stop for the bulls might be $0.2920.

More Losses In DOGE?

If DOGE’s price fails to climb above the $0.2550 level, it could continue to move down. Initial support on the downside is near the $0.2470 level. The next major support is near the $0.2420 level.

The main support sits at $0.2350. If there is a downside break below the $0.2350 support, the price could decline further. In the stated case, the price might slide toward the $0.2120 level or even $0.2050 in the near term.

Technical Indicators

Hourly MACD – The MACD for DOGE/USD is now gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now below the 50 level.

Major Support Levels – $0.2420 and $0.2350.

Major Resistance Levels – $0.2550 and $0.2600.