TLDR
- Dogecoin (DOGE) price has fallen below $0.20 support and currently trades around $0.19 after declining nearly 14% last week
- Key support zone sits between $0.187-$0.190, with analysts warning a break below $0.187 could trigger further selling
- DOGE closed below its 200-day EMA at $0.21, with technical indicators showing bearish momentum including RSI at 39
- Bulls need to reclaim $0.195 level to resume upward movement toward $0.215 target
- If current support fails, next major support level sits at $0.15, representing potential for deeper decline
Dogecoin price faces mounting pressure as the popular meme cryptocurrency trades near critical support levels following a sharp weekly decline. The digital asset has dropped nearly 14% over the past week and currently hovers around $0.19.
The recent selloff has pushed DOGE below the important $0.20 psychological level. This breakdown occurred even as Bitcoin maintains positions close to its all-time highs, highlighting the weakness in meme coin sectors.
Technical analysis reveals that Dogecoin closed below its 200-day Exponential Moving Average at $0.21 on Thursday. The following day saw an additional 10% decline as selling pressure intensified.
Crypto analyst Lingrid identifies the current pullback as an ABC decline pattern. However, the momentum behind this correction appears to be weakening as bears struggle to maintain control below the $0.20 level.
The $0.188-$0.190 zone has emerged as the most critical support area for DOGE. Multiple analysts point to this range as the line in the sand for the meme coin’s near-term direction.
Lingrid maintains that Dogecoin’s structure remains bullish despite the recent weakness. The analyst notes that DOGE has established a higher low on the ascending channel support, which provides some technical foundation for potential recovery.
Key Technical Levels Define Next Move
The current price action places Dogecoin within a crucial buying zone between $0.187 and $0.19. Bulls need to reclaim the $0.195 level with strong volume to confirm a bullish reversal pattern.
If buyers can establish control above $0.195, the next target sits at $0.215. This would represent a recovery of approximately 13% from current levels.
Technical indicators paint a bearish picture in the short term. The Relative Strength Index reads 39 on the daily chart, well below the neutral 50 level. This indicates sustained bearish momentum in the recent price action.
The Moving Average Convergence Divergence indicator has also flashed a bearish crossover signal. Rising red histogram bars below the zero line suggest continued correction pressure may lie ahead.
Support Breakdown Could Trigger Deeper Decline
The risk scenario involves a breakdown below the critical $0.187 support level. Analysts warn this would constitute a clear sell signal and could accelerate the downward movement.
Stanley Crypto echoes similar concerns about the $0.18-$0.19 support zone. The analyst describes this area as the strongest support zone where price action has currently flatlined.
A decisive break below $0.18 on a daily closing basis could extend the decline toward the next major support at $0.15. This would represent an additional 21% drop from current price levels.
The setup suggests potential for higher highs if support holds, but a breakdown below current levels may invalidate the bullish structure entirely.
Market participants are closely watching Bitcoin’s performance as any weakness in the leading cryptocurrency could further pressure the entire altcoin structure.
Current consolidation below $0.195 is expected to delay any potential breakout attempt. The meme coin sector continues to underperform compared to Bitcoin’s resilience near record highs.
At the time of writing, Dogecoin trades at approximately $0.19 as it tests the lower boundary of the critical support zone between $0.187-$0.190.
The post Dogecoin (DOGE) Price: The Critical Level That Could Determine DOGE’s Next Big Move appeared first on CoinCentral.
