Dogecoin (DOGE), as a highly regarded meme coin representative, despite enjoying significant recognition worldwide, is currently facing challenges from a bearish price trend, indicating a possible sharp devaluation.
In the market turmoil on December 26, various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and XRP, experienced significant price declines, with overall market sentiment leaning towards pessimism.
The current downward pressure on DOGE is mainly attributed to the overall weak market sentiment, bearish actions from traders, and a significant bearish price trend.
From a technical perspective, DOGE is on the brink of a delicate breakout, having entered a small consolidation range after failing to hold the critical support level of $0.35. Recently, with further price declines, the meme coin has reached the lower limit of the $0.30 consolidation range, making the situation increasingly severe.
If DOGE fails to hold this lower limit and closes below $0.30 on the daily chart, the memecoin is likely to drop 25%, reaching a level of $0.22.
The bearish argument for DOGE only holds if its daily closing price is below $0.30; otherwise, it may fail.
Bearish on-chain indicators for DOGE
This bearish price trend has changed traders' sentiment. According to data from on-chain analysis firm Coinglass, the long/short ratio for DOGE is 0.71, the lowest level since early December 2024.
DOGE spot inflow and outflow data show a significant outflow of $32.75 million DOGE from exchanges.
Such a large outflow of funds indicates an ideal buying opportunity and suggests potential upward momentum in the future.
DOGE's trading price is close to $0.315, with a price drop of more than 6.89% in the past 24 hours.
During the same period, its trading volume decreased by 13%, indicating that trader and investor participation has declined due to concerns about potential price drops.