The current downward trend in Dogecoin price can be traced using the descending resistance trend line. Much of this decline can be attributed to widespread uncertainty surrounding the approval of a Bitcoin spot ETF. During this period, DOGE has experienced a significant decline of 24%, from a high of $0.107 to the current price of $0.813. An examination of the daily time frame suggests that this decline has evolved into a pattern that may signal further downside for DOGE.

Dogecoin Price Close to Decisive Breakout

  • DOGE price pulls back to 61.8 Fibonacci retracement level, reflecting weak buyer confidence

  • A bullish breakout of the flag pattern will signal the end of the corrective trendline

  • Dogecoin’s 24-hour trading volume was $2.58 billion, an increase of 58%.

Dogecoin Price | Trade View Chart

Analyzing the daily time frame chart, it is clear that Dogecoin (DOGE) price is following two key trend lines despite the current market conditions. The first is a descending trendline that delineates the current correction phase by providing dynamic resistance.

The second is the neckline support of the famous bullish reversal pattern head and shoulders pattern. This pattern is often observed at market peaks and indicates that the trend is about to reverse and asset values ​​may continue to fall.​

Therefore, Dogecoin may diverge from these trend lines if overall market sentiment remains mired in uncertainty. Such a collapse could intensify selling pressure, potentially causing the memecoin’s value to fall by 24% to a critical support level around $0.058.​

Conversely, if the launch of a spot Bitcoin ETF starts to have a positive impact on Bitcoin, the broader altcoin market, including Dogecoin, may also benefit. This scenario could cause Dogecoin to break above the resistance trend line, thereby invalidating the bearish scenario.​

In this scenario, the value of DOGE could rise by approximately 35% to approximately $0.11.​

Dogecoin - Global Money/Outside Money (GIOM)

Entering the Block | Dogecoin Global Money/Outside Money (GIOM)

Dogecoin’s Global Inflows/Outflows of Money (GIOM) indicator provides a more positive outlook. Currently, 55.68% of DOGE holders are “in the money” (making a profit), while 38.81% are “out of the money” (making a loss). Exchange Weixin 13185276075 This distribution indicates a relatively stable investor base, which may support Dogecoin’s future bullish trend. However, a potential breakdown following the head-and-shoulders pattern could leave half of these addresses in the red, increasing the likelihood of panic selling.

  • Relative Strength Index: A daily RSI slope below 50% reflects sellers’ firm control of the asset.

  • Exponential Moving Average: The coin price is resonating within a tight range of the 50-day and 200-day moving averages, indicating swings in market sentiment.