During Wednesday’s trading session, the Dogecoin price experienced a 7.5% drop to reach the trading value of $0.26. This selling pressure can be attributed to a broader market pullback amid uncertainty around U.S. tariff policy. However, with the formation of a bearish reversal pattern, the DOGE holders should brace for further correction.
According to CoinGecko, the DOGE’s market capitalization is at $39.3 Billion, while the 42-hour trading volume is at $4.14 Billion.
Key Highlights:
- The Dogecoin price is on the verge of a bearish breakdown from a double-top pattern, signaling the potential for a 30% decline.
- The DOGE price correction extends below the 50% Fibonacci retracement level, indicating increasing bearish momentum and the possibility of further downside.
- The $0.26 support level, backed by the 200-day EMA, creates a strong support zone for crypto buyers.
Dogecoin Price Hints Major Breakdown Amid Double Top Pattern
In the last three weeks, the Dogecoin price witnessed an aggressive downfall from $0.43 to $0.26, accounting for a 40% loss. The daily chart analysis shows this reversal as the second downturn from the $0.48 resistance, revealing the formation of a double-top pattern.
This chart setup is commonly spotted at the major market top, indicating strong overhead supply with an ‘M’ shaped reversal. Currently, the DOGE price trades at $0.26, teasing a breakdown below the pattern’s neckline support of $0.262.
A successful flip of this support into potential resistance will also push Dogecoin’s correction below the 50% Fibonacci retracement level, intensifying the bearish momentum.
The post-breakdown fall could push the asset 30% down to hit $0.17, followed by a prolonged downfall to $0.08.
On the contrary, if buyers manage to sustain above $0.25, this dog-themed memecoin could shift its trajectory sideways to recuperate the bullish momentum.
Technical Indicator:
Exponential Moving Average: The Dogecoin price correction extending below the daily EMAs (20, 50, and 100) accentuates the seller’s influence rising over this asset. A potential bearish crossover between the 20 and 100 EMA could further accelerate the bearish momentum.
Relative Strength Index: The daily RSI slope plunged to 33%, highlighting the bear’s dominance over price movement.
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