The price of Dogecoin has faced relentless bearish pressure, extending its decline for a fourth consecutive day. This negative momentum began after Donald Trump’s oath-taking speech, which notably omitted any mention of cryptocurrencies. The entire crypto market reacted with significant corrections, and memecoins bore the brunt of the impact. Among them, Dogecoin broke a critical support trendline, signaling increased vulnerability.
Trading at around $0.35, Dogecoin has dropped approximately 9% over the past 24 hours. Furthermore, its intraday trading volume has shrunk by 23%, reflecting reduced investor activity. This drop aligns with a broader sell-off in the memecoin segment, which has experienced heightened negative sentiment.
Bearish Indicators Dominate DOGE’s Daily Chart
Technical indicators paint a bearish outlook for Dogecoin. The Moving Average Convergence Divergence (MACD) indicator reveals a steady decline in the green histogram. This consistent downward trend suggests weakening bullish momentum. Additionally, the MACD lines are nearing a bearish crossover, which could amplify selling pressure.
Read Also: $TRUMP Hits $75.35 All-Time High Before Dropping 28% in 24 Hours
Similarly, the Simple Moving Average (SMA) indicator confirms bearish convergence. Both moving averages suggest that Dogecoin could remain under downward pressure if market sentiment doesn’t improve. These indicators highlight the increasing dominance of bears in the market, making a recovery more challenging.
Key Levels Define DOGE’s Immediate Future
Dogecoin’s price action hinges on several critical support and resistance levels. On the downside, $0.325 serves as an important support level, which could temporarily halt further declines. However, if selling pressure intensifies, the price might test the lower support at $0.265. Breaking this level could mark the start of a deeper correction.
On the upside, $0.385 represents a pivotal resistance level. If Dogecoin can surpass this threshold, it could regain bullish momentum. Above $0.385, the next target lies at $0.440, where renewed investor enthusiasm might propel prices higher. These levels will likely dictate Dogecoin’s short-term trajectory, depending on whether buyers or sellers dominate.
Will Dogecoin Regain Momentum?
A bullish reversal could dramatically shift Dogecoin’s current outlook. If the price successfully retests and breaks through $0.385, increased investor interest could drive further gains. Such a move might reignite confidence in the memecoin sector, which has struggled since the broader market correction. Achieving this breakthrough would require sustained buying pressure and improved market sentiment.
Conversely, if bears maintain control, the price may slip below $0.325. Such a development would likely signal continued bearish dominance, paving the way for a decline to $0.265. A drop to this level would underscore heightened selling activity and dampened investor confidence.
Memecoin Sell-Off Amplifies Dogecoin’s Challenges
Dogecoin’s recent struggles mirror the challenges faced by the memecoin segment as a whole. Trump’s crypto silence has exacerbated bearish sentiment, triggering steep corrections across the board. Memecoins, known for their volatility, have proven especially vulnerable to negative market news. For Dogecoin, this has translated into a steep decline and the breaking of critical support levels.
Despite these challenges, Dogecoin retains its position as the largest memecoin by market capitalization. This status could attract renewed investor attention if broader market conditions improve. However, the path to recovery remains uncertain as bearish signals dominate the technical charts.
What to Watch for This Week
The coming week will be pivotal for Dogecoin’s price trajectory. If buyers manage to reclaim $0.385, it could spark a renewed rally toward $0.440. On the other hand, failing to hold $0.325 would likely lead to further losses. Investors should monitor volume trends and broader market sentiment for clues about the direction Dogecoin may take.
Overall, Dogecoin’s short-term future remains uncertain, with both bullish and bearish scenarios in play. While technical indicators currently favor the bears, a shift in sentiment or increased buying activity could quickly reverse the trend. For now, Dogecoin’s ability to reclaim key resistance levels will determine whether it can recover or face deeper corrections.
