Dogecoin (DOGE) Tumbles: Dip Buying Play or Dead Cat Bounce?

Dogecoin's latest slump has traders divided—is this a bargain-hunter's dream or the start of a deeper plunge?

Subheader: Meme coin meets gravity

DOGE's bearish momentum defies the usual 'buy the dip' crypto mantra. While retail flocks to discounted Shiba Inu-themed assets, whales might be quietly dumping bags. Classic crypto: the 'greater fool theory' works until it doesn't.

Subheader: Institutional yawns meet retail FOMO

No major exchange listings or Elon tweets cushioning this fall. Just pure, unfiltered market dynamics—how refreshingly archaic for crypto.

Closing thought: Whether you're loading up or cutting losses, remember—in Dogecoin's case, 'fundamentals' is just a funny word we pretend to understand between meme posts.

Dogecoin Price Dips Below Support

Dogecoin price started a fresh decline after it failed to clear the $0.20 zone, like Bitcoin and Ethereum. DOGE declined below the $0.1920 and $0.1880 levels.

The bears even pushed the price below the $0.1750 level. A low was formed at $0.1687 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward MOVE from the $0.2005 swing high to the $0.1687 low.

Dogecoin price is now trading below the $0.1850 level and the 100-hourly simple moving average. There is also a key bearish trend line forming with resistance at $0.1880 on the hourly chart of the DOGE/USD pair.

Immediate resistance on the upside is NEAR the $0.1760 level. The first major resistance for the bulls could be near the $0.1840 level. It is close to the 50% Fib retracement level of the downward move from the $0.2005 swing high to the $0.1687 low.

The next major resistance is near the $0.1880 level. A close above the $0.1880 resistance might send the price toward the $0.20 resistance. Any more gains might send the price toward the $0.2050 level. The next major stop for the bulls might be $0.2120.

More Losses In DOGE?

If DOGE’s price fails to climb above the $0.1850 level, it could start another decline. Initial support on the downside is near the $0.1685 level and the trend line. The next major support is near the $0.1650 level.

The main support sits at $0.1550. If there is a downside break below the $0.1550 support, the price could decline further. In the stated case, the price might decline toward the $0.1350 level or even $0.1320 in the near term.

Technical Indicators

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

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

Major Support Levels – $0.1680 and $0.1650.

Major Resistance Levels – $0.1760 and $0.1880.