Dogecoin, which recently peaked locally at around $0.50, has been on a sheer decline, dropping 40%. As the asset tries to hold onto the momentum it acquired earlier in the bull run, the sharp decline indicates strong selling pressure. Given that DOGE is currently trading close to $0.29, concerns are being raised regarding its future course and important levels to keep an eye on.
Dogecoin, which was once a strong support level, has now broken below the critical 50 EMA, according to the chart, which is currently at $0.35. With the bears firmly in control, this breakdown shows a change in market sentiment. Around $0.28, where the 100 EMA aligns, is the next significant support level. If this level is not maintained, DOGE may decline to its next crucial support, which is located at $0.21 and is the 200 EMA.
DOGE/USDT Chart by TradingView
The level of $0.35 now serves as a significant barrier on the resistance side. DOGE must break above this level and reestablish it as support in order to regain its bullish momentum. The $0.38 level is another important resistance zone after that. The volume profile suggests that traders are aggressively exiting positions due to a sharp increase in selling activity.
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Nonetheless, there may be a chance for a short-term consolidation or relief rally as the RSI gets closer to oversold territory at 31. Should buyers intervene to protect the $0.8 support level, such a move would be contingent. In the future, DOGE's course will be greatly influenced by the sentiment of the larger cryptocurrency market. Dogecoin has a difficult time recovering from its sharp losses, but a recovery in market conditions might help stabilize the cryptocurrency.
Conversely, additional market weakness might cause DOGE to enter a more severe correction. Finally, the recent losses of Dogecoin highlight how erratic the cryptocurrency market is. To predict the asset's next move, traders should keep a close eye on the $0.28 support and $0.35 resistance levels. For the time being, DOGE is navigating this difficult phase with caution.
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