Dogecoin has broken a long-term support level, increasing the risks of a deeper price decline.
DOGE price could drop nearly 25% toward the $0.10 zone if selling pressure continues.
Weak crypto market sentiment and lower risk appetite are adding pressure on Dogecoin.
Dogecoin (DOGE) is showing clear signs of weakness after breaking below a long-term support level that remained stable for several months. This technical breakdown has shifted market sentiment toward the bearish side, raising further concerns on whether prices could fall by nearly 25% from current levels.
With sellers firmly in control and buyers struggling to step in, DOGE is now trading in a vulnerable zone where further declines remain a strong possibility. Trading near the $0.13 level at press time, price action over recent sessions has remained volatile, with repeated failed attempts at reclaiming higher ground.
The loss of stability around this range has invoked caution among traders, especially considering the continued uncertainties in broader cryptocurrency markets and reduced risk appetite.
Also Read: Dogecoin Drops as Traders Reduce Exposure Amid Market Volatility
The most important development for Dogecoin was the breakdown of a long-term support area between roughly $0.136 and $0.145. This zone had acted as a price floor throughout much of the year, absorbing selling pressure and triggering rebounds on multiple occasions.
Once it failed, the market structure changed decisively. When long-standing supports break, it often turns into resistance, which is exactly what happened with DOGE. Any short-term rallies toward this range are now facing selling pressure, as traders who bought earlier look to exit positions, confirming that the bearish trend remains intact.
From the current price near $0.13, a 25% decline would take Dogecoin toward the $0.10 area. This holds both technical and psychological importance; DOGE’s current consolidation zone might become a new resistance level.
There are technical indicators like moving averages and momentum spikes, justifying the negative outlook. DOGE price is below major moving averages, which shows that sellers have the upper hand now. Trading volume has also increased on negative days, marking another display of strong bear sentiment.
Dogecoin is also extremely vigilant about developments within the overall crypto markets. It has faced extra pain due to recent downturns in some major cryptocurrencies like Bitcoin and Ethereum.
When major cryptocurrencies witness declines, more volatile currencies like Dogecoin face even tougher falls. The liquidity in the crypto markets has reduced as well, leading to more volatile price movements.
Under such a scenario, not much selling is required to create extreme price movements; it raises the possibility that Doge may rapidly move down towards lower levels before a recovery attempt.
Market sentiment for meme coins went down compared to past cycles. Although Dogecoin still has strong brand awareness and a devoted fan base, speculative trading has seen a reduction.
Traders are now becoming more selective, and market success parameters are rising higher. Dogecoin prices respond highly to news, trending topics on social networks, and statements made by prominent personalities in the past. Recently, such headlines have not seen enduring reactions, implying a lack of sufficient positive factors to overcome the overall bear trend.
The resistance level of the meme coin ranges from $0.136 to $0.145 at the time of press. As long as DOGE stays below this price, the risk of a fall is high. A strong close above this resistance margin will help reduce bearish influence.
The first level of interest would be between $0.115 and $0.105. If the selling momentum increases, $0.10 would become the key level. This margin might form temporary support, but breaking below it would pave the way for lower DOGE movement.
A significant recovery in the overall cryptocurrency market will easily propel Dogecoin price. Bitcoin buying surges will help improve overall sentiment in digital assets.
Favorable factors like adoption, momentum, or market conditions might work towards helping stabilize the price. However, until Dogecoin regains its lost support levels, all positive correction attempts will likely meet resistance.
Also Read: Dogecoin Slips Below $0.13: Big Attention in the Crypto World
A breakdown below a support level has left Dogecoin price in a precarious situation. The likelihood of a pullback to 25% to the support level of $0.10 is growing amid doubts and investor caution. Lack of positive sentiment, market pressures, and decreasing speculative interest continue to adversely influence the market.
Unless the buyers can manage to drive prices above the crucial resistance points, Dogecoin will keep facing pressure in the coming days. If market conditions become stable and meme coins find a new footing that they can take advantage of, DOGE has a better chance of recovery.
1. Why is Dogecoin price under pressure right now?
Dogecoin price is falling after breaking a long-term support level, and overall crypto market sentiment remains weak.
2. What does a 25% drop in DOGE price mean in numbers?
A 25% decline from current levels near $0.13 would push DOGE prices closer to the $0.10 support zone.
3. Is the $0.10 level important for Dogecoin?
Yes, $0.10 is a key psychological and historical support where buyers may try to stop further losses.
4. Can Dogecoin recover from this downtrend?
Recovery is possible if the broader crypto market improves and DOGE reclaims its broken support levels.
5. Is Dogecoin affected by Bitcoin and the crypto market?
Dogecoin closely follows the global crypto market, and weakness in Bitcoin can often increase downside pressure.
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