Dogecoin (DOGE) Plunges Over 5% – Is This the Beginning of a Major Meltdown?

Dogecoin's sudden nosedive sparks panic among meme coin enthusiasts as the digital asset sheds more than 5% of its value in a single swoop.

Technical breakdown or market correction?

The drop triggers flashbacks to previous crypto winters, though some analysts call it just another Tuesday in cryptocurrency trading—where 'fundamentals' are whatever Elon Musk last tweeted about.

Traders scramble while skeptics nod knowingly, muttering about 'asset-backed by memes' and reminding everyone that in traditional finance, this would warrant emergency meetings—but in crypto, it's just another buying opportunity.

Will DOGE bounce back or continue its descent? Only time will tell if this is the start of something bigger or just another blip in the volatile world of digital currencies.

Dogecoin Price Dips Again

Dogecoin price started a fresh decline after there was a close below $0.2720, like Bitcoin and Ethereum. DOGE declined below the $0.2620 and $0.2550 support levels.

The price even traded below $0.250. A low was formed at $0.2451 and the price is now consolidating losses below the 23.6% Fib retracement level of the recent decline from the $0.2887 swing high to the $0.2451 low. Besides, there is a bearish trend line forming with resistance at $0.2550 on the hourly chart of the DOGE/USD pair.

Dogecoin price is now trading below the $0.250 level and the 100-hourly simple moving average. If there is a recovery wave, immediate resistance on the upside is NEAR the $0.2520 level.

The first major resistance for the bulls could be near the $0.2550 level. The next major resistance is near the $0.2720 level. It is close to the 61.8% Fib retracement level of the recent decline from the $0.2887 swing high to the $0.2451 low. A close above the $0.2720 resistance might send the price toward the $0.280 resistance. Any more gains might send the price toward the $0.2880 level. The next major stop for the bulls might be $0.30.

Another Drop 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 $0.2450 level. The next major support is near the $0.2320 level.

The main support sits at $0.2250. If there is a downside break below the $0.2250 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 – $0.2450 and $0.2320.

Major Resistance Levels – $0.2550 and $0.2720.