Dogecoin Price Drops Below $0.35: Is $0.30 Inevitable?

As the cryptocurrency market plummets steeply, Dogecoin (DOGE) seems to be on the verge of hitting the $0.30 support level. This severe downtrend is due to the market correction that struck the market immediately after the inauguration of President Trump. In the last 24 hours, Dogecoin lost 6.47% and pushed the market capitalization to $50.39 billion. As liquidations continue to rise throughout the crypto market, even touching as high as $500 million in long position liquidations, the big question remains: can Dogecoin hold support at critical levels?

Dogecoin Price Analysis

From the 4-hour chart of Dogecoin, one can find the following moves, showing an ongoing correction, as the coin had a 7-day high of $0.43434 before falling by 21.57% and now trades at $0.34066. It is still heavily sold as it continues to slide below key technical levels.

Key Indicators: The five consecutive bearish candle sequence in Dogecoin has now led the meme coin to breach below the 200 Exponential Moving Average (EMA) line. Meme coin also broke through the 50% Fibonacci retracement level at $0.35321. 20 EMA and 50 EMA are approaching a bearish crossover, and this further implies increased bearish sentiment in the market.
RSI Analysis: The 4-hour Relative Strength Index (RSI) nears the levels that mark over sold conditions thus could have hit this. There exists a minor divergence that is in favor of bullish in the Relative Strength Index lines; hence the reversal might still be in progress. Rejections toward the lower level for consecutive bears in price tend to show fighting pressure between purchases and sales around the market place.

Critical Support Zone at $0.33

The next significant buy zone for Dogecoin to purchase lies at the 38.20% Fibonacci retracement level that reads $0.3303 based on price. The area will be critical in establishing whether Dogecoin bottoms and turns around the trend from this level.
If the price holds or bounces back from this support area, a reversal could potentially happen within the next few days.

Whale Activity Brings Hope

Although the bearish trend is still in play, it has recently been found that whale transactions in the Dogecoin network have increased lately. According to crypto analyst Ali Martinez, transactions above $1 million have increased substantially, reaching 588 transactions in the last 24 hours. This indicates that institutional as well as large investors are actively working within the network of Dogecoin, which might be positive if the current market stabilizes and eventually grows in the later stages.

Dogecoin Price Targets

Bullish Scenario: The coin shall move upwards until it reaches the level of $0.37772, at the 61.80% Fibonacci retracement level if Dogecoin does stabilize around the level of $0.33, and if broader market indications do start showing recoveries.

Bearish Case: Here, in the bearish scenario, $0.30 will be a very crucial level for the price action; this will align well with the 23.60% Fibonacci retracement, and once broken below that support level, pressure for more losses is seen.

Conclusion : Crypto News

Dogecoin remains under tremendous selling pressure in this regard because of broader losses seen across the cryptocurrency markets. In the next several days, things will be extremely important for Dogecoin, especially close to $0.33. Holding at this level may serve as the setup for potential reversal of fortunes for the coin. Sustained selling will push the psychological $0.30 level in play and signal a downward trajectory for the coin. Investors should vigilantly monitor technical indicators and whales activity as they navigate through this volatile market.

Disclaimer: This information is provided solely for informative purposes and should not be construed or formed to constitute investment advice. All opinions herein are those of the author and not necessarily of The Crypto Basic. Any investment shall be undertaken only after adequate personal research on your part. The Crypto Basic cannot be responsible for any losses one incurs as a consequence of a choice made by an investment in view of the content of this document.

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