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 by 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 which led to a 12% decline.
This formed a bearish engulfing candle, which backed up the downward price direction. The price has reached 38.20% Fibonacci retracement level of $0.1675 which is a key support level for the bulls.
The bearish sentiment is further reinforced by consecutive red candles on the daily chart. DOGE has failed to hold above the broken support trendline, suggesting that sellers remain in control.
Crypto analyst Ali Martinez highlights a key trendline support at $0.16. If the top meme coin’s price maintains this level, it could bounce toward higher Fibonacci retracement zones.
However, if prices fail to bounce, the ongoing correction may continue, which will affect the price much deeper.
Technical Indicators Show Weakness Amid Whale Sell-Off
Technical analysis also shows that the selling pressure is still prevalent in the Dogecoin price direction.
The daily RSI is currently testing the oversold territory to possibly signal a short-term rebound in the near future. However, the MACD and signal lines have crossed in a negative manner, which implies continuous sell signals.
The on-chain metrics show that the whales are selling large amounts of DOGE. Whale Alert noted a large transfer of 360 million DOGE worth about 62.66 million to Binance.
This type of large whale movement suggests there is more selling pressure, which may limit any potential upside attempts.
Notably, on the volume profile, Dogecoin has not been able to find much support with buying volumes decreasing over the time.
The recent breakdown also implies that the traders are rather reluctant to go long in the DOGE unless they see support at the current levels.
If selling pressure remains the same or even intensifies, Dogecoin price will continue to experience declines in the following sessions.
DOGE Price Targets: Can Bulls Reclaim $2?
According to Ali Martinez’s technical analysis, if the top meme coin’s price bounces from $0.16, the asset’s price could return to $2.
However, before such a rally takes place, the price must regain the $0.20 technical level as the 50% Fibonacci retracement level. A push above or through this psychological level might lead to further upward continuation.
On the other hand, if DOGE continues to trade below $0.16, more losses are possible. The next level of support is found on the 23.60% Fibonacci level at $0.1315.
Any breakdown below this level could possibly extend the bearish outlook and longer term opportunities to rally back to $2.
Dogecoin price continues to be volatile due to whales selling their holdings and bearish technical indicators.
