Dogecoin (DOGE) is facing a tough time; technical indicators are pointing to a possible price drop, which is attracting the attention of cryptocurrency investors.
Current market conditions suggest that a critical price level is under threat, under the influence of a generally bearish trading mood.
According to the latest analysis by COINOTAG, “If DOGE fails to stay above $0.30, a significant drop is possible.”
According to the latest assessments of Dogecoin price movements and market mood, in case of a possible decline, the price of DOGE could drop to $0.22 levels.
Recent technical analysis suggests that Dogecoin is at a critical point as it has failed to find support at $0.35. This has led to Dogecoin’s price consolidating within a narrow range, with market watchers eyeing $0.30 as a critical threshold.
According to one assessment, if DOGE fails to stay above this level and the daily candle closes below $0.30, there is a risk of the price falling to $0.22. This potential 25% drop is causing concern among investors who are closely monitoring market conditions. On-chain metrics also support the prevailing bearish sentiment around Dogecoin. According to Coinglass, DOGE’s Long/Short Ratio has fallen to 0.71, indicating widespread bearish sentiment among traders. This trend, combined with the current 58.3% of DOGE traders holding short positions, reinforces the perception that a decline is imminent. However, another point to note is that long-term investors are choosing to trade during this price decline, creating potential buying opportunities.
Dogecoin is currently trading around $0.315 and has seen a significant drop of 6.89% over the last 24 hours. Along with this negative price action, trading volume has decreased by 13%, indicating that many investors are hesitant to trade during the downtrend.
It is critical for traders to closely monitor any changes in market momentum and focus on whether DOGE can break above $0.30 to avoid further losses.
