Cryptocurrency Dogecoin has fallen sharply by 15%

Cryptocurrency experts note that since April 2021, the price of the Dogecoin meme DOGE $0.11 Dogecoin -1.96% Market capitalization $15.49 billion VOL. 24 hours $93.02 million has followed a downward resistance trend line, reaching a low of $ 0.049 in June 2022. Despite several failed breakout attempts (red icons on the chart — ed.), the price finally broke above the trend line in November 2023.

The breakout led to a new 2023 high of $ 0.108 in December, just below a critical horizontal resistance zone. Since then, the price of DOGE has continued to decline.

The weekly RSI is above 50, but has declined over the past two weeks, falling below 70, indicating a weakening trend. This indicates a change in momentum after the recent high. In turn, this is causing caution among traders.

Price action shows that DOGE has been trading inside a downward parallel channel since December 11. Such channels usually contain corrective moves. While yesterday’s decline caused a drop below the channel’s support line, DOGE created a long lower wick, which is a sign of buying pressure (green icon on Chart 2 — ed.). This wick confirmed the $ 0.075 Fibonacci support and the horizontal support zone.

Despite this seemingly bullish price action, the daily RSI is bearish. The indicator fell below 50 (red circle on the chart — ed.) for the first time since October (green circle on the chart — ed.). Therefore, the future trend will depend on whether the DOGE price breaks down or rebounds.

Cryptocurrency market analysts emphasize that a breakout of the channel could trigger a 9% decline in DOGE to the level of support at $ 0.075. On the other hand, a breakout from the channel could trigger a 25% increase in the meme coin to the next resistance at $ 0.100.