Dogecoin Price Under Bear Pressure

Dogecoin price is currently under immense bear pressure after declining by almost 30% in the past week. The largest meme coin’s price fails to edge higher as it trades near crucial supports.

Notably, the total capitalization of meme coins has also declined, falling to $47.53 Billion, down 7.71%. Currently, DOGE price is testing $0.1675, a support level identified in the recent technical analysis.

Dogecoin Price Breaks Wedge Pattern, Faces Bearish Pressure

The new wave of selling pushed Dogecoin price below a falling wedge pattern, leading to a 12% decline. This formed a bearish engulfing candle, reinforcing the downward price direction. The price has reached the 38.20% Fibonacci retracement level of $0.1675, which is a key support level for bullish traders.

Bearish sentiment is further bolstered by consecutive red candles on the daily chart. DOGE has been unable to remain above the broken support trendline, suggesting sellers remain in control.

Crypto analyst Ali Martinez highlights a key trendline support at $0.16. If DOGE maintains this level, it could bounce toward higher Fibonacci retracement zones. However, if prices do not bounce, the ongoing correction may continue, potentially causing deeper price declines.

Technical Indicators Show Weakness Amid Whale Sell-Off

Technical analysis indicates persistent selling pressure on Dogecoin. The daily RSI is currently testing oversold territory, which could signal a short-term rebound. However, the MACD and signal lines have crossed negatively, suggesting continuous sell signals.

On-chain metrics reveal that whales are offloading large amounts of DOGE. Whale Alert noted a transfer of 360 million DOGE (approximately $62.66 million) to Binance. Such large whale movements imply heightened selling pressure that may cap any potential upside.

Moreover, the volume profile indicates that Dogecoin has struggled to find support, with decreasing buying volumes over time. Traders appear reluctant to go long on DOGE unless they see support at current levels. Continued selling pressure could lead to further declines in successive sessions.

DOGE Price Targets: Can Bulls Reclaim $2?

According to Ali Martinez’s analysis, if Dogecoin’s price rebounds from $0.16, it could aim for $2. However, before any rally occurs, the price must reclaim the $0.20 technical level, marking the 50% Fibonacci retracement level. A breakthrough of this psychological level may encourage further upward movement.

Conversely, if DOGE remains below $0.16, additional losses may occur, with the next support found at the 23.60% Fibonacci level of $0.1315. A breakdown below this level could extend the bearish outlook and delay long-term opportunities to rally back to $2.

Dogecoin price continues to exhibit volatility due to large holdings being sold off by whales and bearish technical indicators.