Dogecoin (DOGE), the most popular meme cryptocurrency by market cap, is facing bearish sentiment as market dynamics begin to shift. Over the past few days, the overall crypto market has been caught in a web of uncertainty, leaving investors questioning whether prices will rise or fall.
At this stage, predicting DOGE’s price trajectory remains challenging, but recent daily charts indicate a clear bearish trend taking shape.
Dogecoin (DOGE) Technical Analysis and Key Levels
According to CoinPedia’s technical analysis, DOGE is hovering near a crucial support level at $0.383 after breaking below an ascending triangle pattern. Following this breakout, DOGE has retested the breakdown level and is now finding some support.
Current Support: $0.383
Key Risk: If DOGE fails to hold above this support and closes a daily candle below $0.38, it could face a significant drop of 15%, potentially reaching $0.31 in the days ahead.
However, there’s a silver lining: DOGE’s Relative Strength Index (RSI) currently sits at 50, indicating that the asset is far from the overbought zone. This suggests the possibility of a price rebound in the near future.
Market Sentiment: 83.68% of Traders Hold Long Positions
Despite the bearish technical outlook, on-chain sentiment appears bullish, with most traders betting on DOGE holding the critical $0.383 level. Data from Coinglass shows that 83.68% of top Binance traders are currently holding long positions on DOGE, while only 16.32% are shorting the asset.
The DOGEUSDT long/short ratio on Binance is currently at 5.13, reflecting strong bullish sentiment among traders. This suggests that investors are determined to maintain DOGE above its key support level and prevent further declines.
Current Price Momentum
As of writing, DOGE is trading near $0.39, reflecting a 2.65% decline over the past 24 hours. Additionally, its 24-hour trading volume has dropped by 26%, signaling reduced activity among traders and investors as bearish sentiment takes hold.
Conclusion: A Critical Moment for DOGE
Dogecoin is at a pivotal point, with key support at $0.383 holding the line between stability and further downside. While bearish indicators dominate the technical landscape, bullish on-chain sentiment and a neutral RSI offer hope for a potential price reversal.
For traders and investors, monitoring the $0.38 level is crucial. A sustained drop below this threshold could lead to further losses, while a rebound could signal the start of a recovery.
Stay alert, manage risk carefully, and watch this space as DOGE’s next move unfolds.
