Can Dogecoin survive the ongoing supply glut and rebound from $0.35 to challenge the key resistance levels?
With a massive liquidation wave in the cryptocurrency market, Dogecoin faces enormous selling pressure, causing a significant drop in price. In this scenario, the price of DOGE is at a critical moment that will determine its future trend.
With a large outflow of investors in the meme coin space, the possibility of Dogecoin reversing seems very low. Can the largest meme token withstand the bearish pressure, or will it inevitably drop to $0.30?
Dogecoin (DOGE) Price Analysis
The price trend of Dogecoin on the 4-hour candlestick chart shows significant adjustments over the past few weeks. After failing to reach the psychological barrier of $0.50, DOGE rebounded to a peak of $0.4846 on December 8, 2024.
Since then, increased market volatility has weakened the buying pressure for Dogecoin. After breaking below the 200 EMA line on the 4-hour candlestick chart, DOGE plummeted to a 24-hour low of $0.3574 as the market adjusted.
However, the price trend of Dogecoin shows lower price rejection, currently trading at $0.35962. A sudden surge in supply triggered a massive collapse, leading to a bearish crossover between the 20 EMA line and the 200 EMA line.
Moreover, the enhancement of bearish momentum in the 4-hour DOGE led to a decline in the 4-hour RSI, which has entered the oversold zone and issued a sell signal.
This limits the possibility of forming a double bottom at $0.35, as Dogecoin's price rebounded from similar levels in November. Therefore, technical indicators suggest that the likelihood of a bullish reversal is low.
Key Price Levels for Dogecoin
If Dogecoin's upward trend continues above the 23.60% Fibonacci level ($0.3732), it will face multiple dynamic resistances, including the 200-day and 20-day EMA lines. These may hinder the upward trend, making it difficult for the price to recover the $0.40 mark.
Conversely, as market volatility increases, speculative traders in the meme coin space may exit their positions. In this case, the price of Dogecoin may retest the key support level of $0.34 and face greater pressure.
