Dogecoin, the popular and largest meme cryptocurrency by market capitalization, is trending downwards as sentiment begins to shift. In recent days, the overall cryptocurrency market has been quite confusing, raising concerns about whether prices will rise or fall. However, at this point, predicting prices is unpredictable, although DOGE's daily chart has formed a bearish price action.

Technical analysis of Dogecoin (DOGE) and upcoming levels

According to CoinPedia's technical analysis, DOGE is currently at a critical support level of $0.383, after breaking out of an ascending triangle price action pattern. With recent volatility, along with significant fluctuations, DOGE has successfully retested the breakout level and is currently receiving support.

Based on recent price action and historical momentum, if DOGE fails to hold this support level and closes a daily candle below $0.38, there is a high probability that it could drop by 15% to reach $0.31 in the coming days.

However, DOGE's Relative Strength Index (RSI) is currently at 50, which is far from the overbought zone, indicating a potential price reversal in the coming days.

83.68% of DOGE traders are holding long positions

In addition to the bearish technical analysis, it appears that traders are holding DOGE at the support level of $0.383, as reported by the chain analysis firm Coinglass. Data from the Long/Short ratio of DOGEUSDT on Binance is currently at 5.13, indicating strong bullish sentiment among traders.

Additionally, data shows that currently, 83.68% of top traders on Binance are holding long positions, while 16.32% are holding short positions.

When combining these chain indicators with technical analysis, it appears that investors are trying to keep the price above the critical support level and prevent further declines.

Current price momentum of DOGE

At the time of the press, DOGE is trading near $0.39 and has experienced a price drop of over 2.65% in the past 24 hours. During the same timeframe, its trading volume has decreased by 26%, indicating lower participation from traders and investors as sentiment shifts to bearish.

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