Dogecoin ($DOGE ), the leading meme coin by market capitalization, faces mounting uncertainty as bearish sentiment begins to take hold. Recent market trends have been erratic, leaving investors uncertain about the direction of DOGEโs next move. While the broader crypto market remains volatile, technical indicators point toward potential downside risks for DOGE.
๐ Technical Analysis: Bearish Signals Emerging
DOGE is currently trading around a critical support zone of $0.383 after breaking down from an ascending triangle pattern. Despite successfully retesting this level, the coinโs inability to push higher raises concerns. If DOGE fails to maintain support at $0.38 and closes below this threshold on the daily chart, the price could decline furtherโpotentially falling 15% to test the $0.31 level in the coming days.
On the other hand, the Relative Strength Index (#RSI: ) sits at 50, indicating that DOGE is not overbought. This metric suggests room for a potential reversal if bullish momentum reemerges. However, current market dynamics hint at caution.
๐ On-Chain Metrics: Bulls vs. Bears
Despite bearish price action, bullish sentiment among traders persists. Data from Coinglass shows that 83.68% of Binance DOGEUSDT traders are holding long positions, with a long/short ratio of 5.13. This optimism from the trading community has helped sustain DOGE at the $0.383 support level, staving off further declines for now.
At press time, DOGE is trading near $0.39, down 2.65% over the past 24 hours, accompanied by a 26% drop in trading volume. Reduced participation suggests waning enthusiasm among traders and investors as market sentiment leans bearish.
Conclusion: While bulls are attempting to defend critical support, the risks of a breakdown remain. Traders should keep a close eye on key levels, as a breach of $0.38 could signal further downside for DOGE in the short term.
