Losing the bullish momentum at the start of 2024, the meme coins are losing their grip over critical support levels. Leading to a bearish channel breakdown in DOGE price trend, the increased selling pressure reshapes the daily chart.
Worsening the pullback starting from the psychological pitstop at $0.10, the downfall accounts for an 18% in the last three weeks. Such a sharp fall in the biggest meme coin as per market cap warns of a sector-wise crash.
Read our DOGE price prediction NOW to find out if Dogecoin will cross the $0.10 mark in 2024.
DOGE Price Backed At $0.082, Will Buyers Make A Comeback?
With an evident falling channel breakdown in the daily chart, the DOGE price action warns of a trend reversal quite early in 2024. The breakdown puts the Q4 2023 recovery of 43% at risk and tests the bullish dominance at $0.082.
The bearish engulfing candle of 9.47% drop this Wednesday is the bearish trendsetter for Dogecoin. Further, the downfall finds the support of a sharp increase in trading volume, increasing the downfall possibility.
Currently, the DOGE price trades at $0.0831 retests the broken descending support trendline, and marks an intraday fall of 1.07%. However, the downfall sustains above the $0.082 level and shows a long tail formation, reflecting a bullish attempt to save the rally.
Technical indicators:
MACD Indicator: With the flash correction spree, the MACD and signal lines are falling under the zero line. The rising intensity of the bearish histograms supports the negative path and reflects an increase in selling.
RSI Indicator: As Dogecoin sustains above the $0.082 mark, the buyers manage to keep the downfall at bay. However, the falling RSI line is extremely close to the oversold boundary, supporting the bearish viewpoint like the MACD indicator.
Will Dogecoin Survive This Fall?
Despite the Dogecoin price coming as high as the 10 cents mark, the lack of support in the early days of 2024 may soon drive all the bullish work to vain. As the technical indicators and the price pattern analysis warn of a downfall, the sentiments are taking a toll and turning bearish day by day.
The last few lines of defense for the DOGE price are the $0.082 support level and the 200D EMA at $0.070. Hence, the survival chances for Dogecoin are limited to these levels for now. In case of a reversal from anywhere between these levels can result in a bounce back to $0.10.
Therefore, long-term HODLers can continue to sit longer on the DOGE and wait out the correction spree. On the flip side, short-term traders can find out selling opportunities in case of crucial levels breakdown.
Credit: Source link