Dogecoin (DOGE) has experienced a significant downturn, falling 40% from its recent peak of $0.50. Currently trading around $0.30, the once-bullish momentum has shifted, with strong selling pressure driving the price down. Investors and traders are now closely monitoring DOGE’s next moves and critical price levels that could signal a reversal or further decline.
Breaking Key Support Levels
DOGE’s breakdown below its 50-day Exponential Moving Average (EMA), previously a strong support at $0.35, reflects a shift in market sentiment. The bearish control has pushed the price lower, with the 100 EMA at $0.28 now serving as the next major support. If DOGE fails to hold this level, it risks dropping to $0.21, where the 200 EMA stands as a potential support zone.
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This key level could play a pivotal role in preventing a deeper decline.On the upside, DOGE faces a significant resistance barrier at $0.35. For bullish momentum to return, the price must break above this level and flip it into support.
Source: CoinMarketCap
The next major resistance lies at $0.38. Overcoming these levels would signal renewed buyer interest and could potentially drive DOGE’s price higher. However, without sufficient buying pressure, the cryptocurrency remains at risk of continued declines.
Market Sentiment and Trading Activity
The trading volume indicates an increase in sell-offs as traders reduce their exposure to DOGE. This heightened selling activity underscores the bearish sentiment currently dominating the market. Despite this, some relief may be possible. The Relative Strength Index (RSI) is approaching the oversold zone, currently sitting at 31. If buyers step in to protect the $0.28 support, DOGE could see a short-term rally or period of consolidation.
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The larger cryptocurrency market’s sentiment will significantly influence DOGE’s trajectory. If market conditions stabilize, DOGE might recover and regain momentum. On the other hand, if broader market weakness persists, DOGE could face an extended correction. Traders should keep a close watch on the $0.28 support and $0.35 resistance levels, as they will likely dictate DOGE’s next major move. Dogecoin’s 40% drop highlights the inherent volatility of the cryptocurrency market. With support at $0.28 and resistance at $0.35, these key levels will shape DOGE’s path in the short term.
Traders and investors should remain alert to shifts in market sentiment and broader crypto market trends. While a recovery is possible, sustained bearish conditions could push DOGE to new lows.
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