Dogecoin’s Decline Continues: Will It Rebound or Drop Further?

Dogecoin (DOGE), the popular meme-based cryptocurrency, is experiencing a sharp decline as selling pressure grips the crypto market. Over the past two days, DOGE has lost more than 15% of its value. The downward momentum, which started at the beginning of the week, extended into Tuesday’s trading session.

DOGE Falls Below Key Technical Level

The price drop pushed Dogecoin below the 200-day Simple Moving Average (SMA) at $0.24 for the first time since October 2024. This critical technical level previously served as a strong support zone. The breach of this support signals increased bearish momentum, making it difficult for DOGE to stage a quick recovery.

The broader cryptocurrency market remains unstable, further pressuring DOGE. Bitcoin dropped below $90,000, marking its lowest value since mid-November. Several altcoins, including Dogecoin, suffered significant losses.

24-hour price chart. Source: CoinMarketCap

At the time of writing, DOGE had declined 14% in the last 24 hours, reaching $0.199. Meanwhile, an index tracking major digital tokens was on track for its largest four-day drop since early August.

Altcoins Struggle Amid Investor Concerns

Investor sentiment has shifted, leading to increased pressure on altcoins. The sector is still recovering from the Bybit attack last week, which exacerbated the market downturn. Since mid-December, most altcoins have lost between 30% and 80% of their value.

Dogecoin has followed this broader trend, extending its losses from Monday’s session. The price fell below the 200-day SMA at $0.24 and continued its decline into Tuesday, touching lows of $0.195. Crypto analyst Ali emphasizes the significance of the $0.19 support level. If DOGE drops below this mark, it could trigger a deeper correction toward $0.060.

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However, if Dogecoin rebounds from $0.19 and reclaims the 200-day SMA at $0.24, selling pressure might ease. In this scenario, DOGE could attempt a rally toward the 50-day SMA at $0.30, where it may face resistance.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.