Dogecoin inflicts a bearish breakout, bulls can consider these levels

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• The daily chart was overly bearish. 
• Trading volumes were stunted while negative sentiment grew. 

According to TradingView, Dogecoin [DOGE] plunged 5.4% on 8 May, inflicting a bearish breakout from its previous price consolidation range (yellow). DOGE has sustained a price dump since hitting the price ceiling near $0.1000 on 18 April. 

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Overall, the meme coin has depreciated by over 20% since the second half of April. It traded at $0.07274, at press time. Sellers could gain more ground if low trading volumes and bearish sentiment persist in the coming days/weeks. 

Will the $0.06824 support stop the drop?

Source: DOGE/USDT on TradingView

The bullish order block (OB) at $0.06824, formed on 1 January, has acted as a crucial support zone (cyan) in the past four months. It checked a similar plunge in mid-March. However, a retest of the support will imply that DOGE cleared all the gains made in Q1 2023. 

At press time, price action breached the lower range boundary, allowing sellers to gain more ground. The drop also left an FVG (fair value gap) within the $0.07303 – $0.07610 range. DOGE could drop further to the bullish OB at $0.06824 before rebounding. 

Conversely, a bullish Bitcoin [BTC] could tip bulls to claw back lost ground and move up into the previous trading range of $0.07599 – $0.08269.

However, such an upswing and any move toward $0.1000 will need the FVG zone to be filled for bulls to gain leverage. 

Meanwhile, the RSI dipped in the lower range – signaling increased selling pressure. Similarly, the CMF (Chaikin Money Flow) moved southwards below zero, indicating more capital outflows from the DOGE market. 

Trading volume and sentiment declined

Source: Santiment

How much are 1,10,100 DOGEs worth today?

According to Santiment, the last date DOGE had positive sentiment was 20 April, and trading volume stood at $1.99 billion. After that, both sentiment and trading volumes declined. 

At press time, trading volume was below $500 million while sentiment slid deeper into the negative territory. 

In addition, the funding rates turned negative, reiterating the bearish pressure at press time. If the trend persists, DOGE could drop and retest the bullish OB (cyan).