Loyal Dogecoin fans, do you feel a bit anxious lately? This market trend has indeed been somewhat unexpected! Dogecoin (DOGE) has fallen more than 10% this week, but don't worry, it started testing a very crucial support level again on Thursday.

So will Dogecoin continue to decline, or will it rebound from here?

Dogecoin's price has plummeted; is there a chance for a reversal?

Let's talk about the recent movement of Dogecoin: on December 8, DOGE reached an annual high of $0.48, who would have thought it would then drop by over 23%! However, this adjustment might not be entirely bad.

On Tuesday, DOGE found support around $0.35 and successfully established a bottom. Why is this particularly important? Because $0.35 is precisely at the 61.8% Fibonacci retracement level from the low of $0.14 (November 3) to the high of $0.48 (December 8).

In other words, this is seen as the 'golden buying zone' in the eyes of the market.

As of Thursday, Dogecoin's price has slightly rebounded and is stabilizing around $0.36. For those looking to buy the dip, the $0.35 support level might be a good entry point.

With key support in place, is there a chance for a rebound?

If Dogecoin successfully holds the $0.35 support and rebounds, it could lead to a 13.5% increase, challenging the $0.41 high again. However, don't expect it to happen all at once. Market sentiment is still relatively unstable, so be careful.

Do not be blindly optimistic, as Dogecoin's daily Relative Strength Index (RSI) has fallen below 50, indicating significant selling pressure in the market.

If Dogecoin is to rebound, the RSI must rise above 50 to provide some momentum for this rebound.

The risk of a breakdown is not to be underestimated.

If Dogecoin fails to hold the $0.35 support and drops below $0.34, caution is warranted, as it may continue to decline, possibly returning to the $0.31 support level.

Therefore, if friends plan to enter the market, remember to be particularly cautious, as market uncertainty is high, and rushing in may lead to pitfalls.

If you are ready to buy at this level, it is advisable to patiently wait for confirmation of the $0.35 support. Remember, the market changes rapidly, so staying calm and rational in your actions is crucial! 🐕💰