Dogecoin (DOGE) Shows Bearish Trend, Aiming For $0.07 After Breaking Support

Crypto analyst Trader Tardigrade has identified a Double Bottom pattern in Dogecoin (DOGE) along with RSI Bullish Divergence. This pattern is characterized by two equal lows in DOGE’s price while the RSI shows higher lows. Tardigrade suggests that if DOGE can recover from this formation, it might lead to a sustained bullish trend and price increase.

Currently, Dogecoin is trading at $0.125125 with a 24-hour trading volume of $51.48 billion. Its market cap is $18.08 billion, representing 0.79% of the total market. DOGE has risen by 4.94% over the past 24 hours.

Despite the recent price rise, Dogecoin has broken below the lower boundary of its upward trend channel, signaling a potential shift in its medium to long-term direction. This breach could indicate a slowdown in its upward movement or the beginning of a sideways trend.

Technical analysis also shows that DOGE has formed a bearish head and shoulders pattern, confirmed by its fall below the crucial support level at $0.13. Analysts predict that this downtrend may continue, potentially pushing the price down to $0.07 or lower.

Changelly’s Bearish Dogecoin Forecast & Key Indicators

Breaking the $0.13 support level suggests a higher chance of further declines. Any recovery attempts are expected to face strong resistance at this level, as indicated by recent market activity.

The volume balance has been negative, showing that DOGE prices are declining more often than rising. This shift points to decreasing investor confidence and optimism.

The RSI has dropped below 30 after weeks of falling prices, indicating strong negative momentum. This could lead to further declines unless market sentiment significantly improves.

Changelly predicts that Dogecoin’s price will drop by about 2.04% on June 26, 2024. This forecast aligns with the current market sentiment, which is mostly bearish, as shown by a Fear & Greed Index score of 51 (Neutral).

In light of a potential bear market for Dogecoin, traders and investors should closely watch key support levels and market sentiment indicators to develop effective trading strategies.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.