Dogecoin Show Bearish Signal; Can $DOGE Support Level Hold?

Following today’s crypto market downturn, the dog-themed meme coin Dogecoin has experienced heightened bearish sentiment. Its price dropped to an intraday low of $0.09871, a 4.07% decline from its opening value of $0.1029.

However, the token has slightly rebounded upon reaching this level, stabilizing above the $0.99 support level. As of press time, DOGE exchanged hands at $0.1001, reflecting a 2.89% ebb in the last 24 hours alone.

Amid this adverse price action, the asset’s market cap dipped to the $14.578 billion threshold, securing the 9th spot in the crypto rankings.

DOGE/USD 1-Day Chart (Source: CoinMarketCap)DOGE/USD 1-Day Chart (Source: CoinMarketCap)
DOGE/USD 1-Day Chart (Source: CoinMarketCap)

On the contrary, DOGE’s trading volume tells a different story. In just 24 hours alone, it surged by 27.60% to $454.349 million, indicating heightened trading activities in the Dog memecoin’s market despite the recent pessimistic mood.

Meanwhile, other meme coins have also faced a similar price slowdown. Shiba Inu, for instance, slumped by over 3.14% to $0.00001308, while the PEPE token plummeted by 1.76% to $0.05741. As these top meme coins struggle to maintain their value, the entire meme coin market has also declined by 2.55% to $36.66 billion within the same period.

Dogecoin’s Long-Term Outlook: Support Levels Under Pressure

Upon hitting this year’s peak at $0.2289 on March 28, the DOGE token has been trending in a descending channel, a pattern formed by a series of lower highs and lower lows. Typically, this setup is often associated with a bearish trend, further segmenting the long-term bearish outlook in the Dogecoin market.

DOGE/USD 1-Day Chart (Source: TradingView)DOGE/USD 1-Day Chart (Source: TradingView)
DOGE/USD 1-Day Chart (Source: TradingView)

Should this tendency persist, market analysts believe that dog memecoin price could be in jeopardy, as it would retest the $0.9354 mark for potential support. Nevertheless, if this level falters, the asset’s value might reach more profound levels, potentially eyeing the 6-month low at $0.08049.

Despite this pessimistic outlook, some analysts believe that a potential rebound could occur if key support levels are maintained in the coming weeks. Supposing the $0.9746 low holds firm, the dog memecoin could potentially see a trend reversal and aim for a retest of the $1.1110 resistance level.

Diving deeper into technical analysis, Dogecoin has been resilient in dropping a zero every four years, which could indicate a potential pattern for future growth. Should these historical trends continue, the dog token is anticipated to maintain its upward trajectory and reach the $0.89 level, with the potential to hit the theoretical $2.2 mark in the long term. This could mark a 2,183% uptick from its current value.

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Source: https://www.cryptonewsz.com/dogecoin-bearish-signal-can-doge-support-hold/