As the crypto market rapidly declines, Dogecoin warns of a potential drop to $0.30. Will the $0.33 level provide a rebound opportunity?
Following a decline in the crypto market just hours after President Trump’s inauguration, meme coins are seeing a sharp decline. Dogecoin fell 6.47% in the last 24 hours, with the market cap now at $50.39 billion.
As broader market liquidations reach nearly $750 million, selling pressure has led to liquidations of long positions worth $500 million. Amid this intense bearish phase, the key question remains: will Dogecoin hold above critical support levels?
Dogecoin Price Analysis
On the 4-hour chart, Dogecoin’s price action reveals an intense correction phase. After hitting a 7-day high of $0.43434, the meme coin fell by 21.57%. Currently, Dogecoin is trading at a market price of $0.34066.
A streak of five consecutive bearish candles pushed Dogecoin below the 200 EMA line. Additionally, it surpassed the 50% Fibonacci level at $0.35321. Due to increased selling pressure, the 20 and 50 EMA lines are on the verge of a bearish crossover.
The 4-hour RSI line is approaching the oversold zone but reveals minor bullish divergence, hinting at a potential reversal. Additionally, lower price rejections in consecutive bearish candles indicate a bullish struggle to absorb supply pressure.
The next support zone at the 38.20% Fibonacci level ($0.3303) will serve as a crucial crossroads for Dogecoin’s price trajectory.
Increased transactions with whales
As the price of Dogecoin sees a massive decline, crypto analyst Ali Martinez highlights the growth of the Dogecoin network. In a recent Message (formerly Twitter), the analyst highlighted a sharp increase in transactions with whales.
According to data from Santiment, the number of transactions exceeding $1 million on the Dogecoin network has increased significantly. Over the past 24 hours, these transactions peaked at 588, signaling network growth.
DOGE price targets
If the broader market stabilizes, reduced selling pressure and increased whale activity could fuel Dogecoin’s reversal. Therefore, if buyers regain momentum at the 38.20% Fibonacci level, the price could rally back to the 61.80% Fibonacci level near $0.37772.
Conversely, if the downtrend continues, the next key level to test will be the psychological support at $0.30, close to the 23.60% Fibonacci level.
DisClamier: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.