Last week, Dogecoin went through another downturn after undergoing a three-week recovery. This led to a notable loss, and other major meme coins are now following suit with an average 10% loss in a week.
Doge’s market structure is still considered bearish on the daily chart following a dramatic reduction in the past few months. In fact, things are beginning to look uglier again as it poises for another crash.
This came after taking a short break in March, but later resumed bearish in the late month due to a rejection at $0.2. As we can see on the daily chart, the price is now in a downward range due to rising supply. While it appears weak on the day, a breakdown should be expected soon.
The latest drop is targeted at $0.1 from a technical standpoint, although the bears might face a little threat on the way down. Last month’s low is the key breakdown level to watch for this drop. However, if it holds well, we can expect a bounce back with a fresh bullish pattern.
But looking at the market from a technical standpoint, the bears will likely have the upper hand. The overall negative market sentiment is another thing to consider for a bearish extension. A reversal move may be considered if Doge forms a lower low and lower high pattern. As it stands, the trend remains bearish.
Source: Tradingview
The bears currently aim to reclaim the $0.142 low, printed last month. A crack there could send the price to a new low of $0.128, followed by the main $0.115 level.
Yesterday’s rejected $0.18 high is now held as resistance. A resurge above this high could trigger a fresh increase to the $0.2 and $0.24 resistance levels.
Key Resistance Levels: $0.18, $0.2, $0.24
Key Support Levels: $0.142, $0.128, $0.115
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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