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Will Dogecoin survive the ongoing supply flood and stage a rebound rally from $0.35 to challenge key resistance levels?
With a massive liquidation spree hitting the crypto market, Dogecoin faces significant selling pressure, resulting in a sharp decline. Amid such conditions, DOGE’s price stands at a critical juncture in determining its upcoming trend.
As the meme coin segment sees an exodus of investors, Dogecoin’s chances of reversal appear slim. Will the largest meme coin withstand the bearish pressure, or is a crash to $0.30 inevitable?
Dogecoin (DOGE) Price Analysis
The Dogecoin price trend on the 4-hour chart shows a significant correction over the past few weeks. After failing to reach the $0.50 psychological mark, the DOGE rally peaked at $0.4846 on December 8, 2024.
Since then, increased market volatility has dampened buying pressure for Dogecoin. After breaking below the 200-EMA line on the 4-hour chart, DOGE crashed to a 24-hour low of $0.3574 as the broader market corrected.
However, Dogecoin’s price action shows a lower price rejection, currently trading at $0.35962. The sudden surge in supply, which triggered the massive crash, has led to a bearish crossover between the 20-EMA and 200-EMA lines.
Furthermore, the increased bearish momentum on the 4-hour DOGE has caused a decline in the 4-hour RSI, which has entered the oversold zone and is signaling a sell.
This limits the chances of a double bottom forming at $0.35, as the Dogecoin price bounced from similar levels in November. Therefore, the technical indicators suggest that a bullish reversal is unlikely.
Dogecoin Key Price Levels
If the Dogecoin uptrend continues above the 23.60% Fibonacci level at $0.3732, it will face multiple dynamic resistances, including the 200-day and 20-day EMA lines. These could hinder the uptrend, making it difficult for the price to reclaim the $0.40 mark.
Conversely, speculative traders in the meme coin space are likely to exit their positions as market volatility increases. In such a case, the Dogecoin price will likely retest the crucial $0.34 support, with added pressure.