Dogecoin (DOGE) experienced a significant price drop, marking a breakdown under the main levels of support. Taking on the threshold of $ 0.24, the Dogecoin price sparked concerns concerning a potential dive below psychological support of $ 0.20.
Dogecoin price ventilation
On the 4 -hour table, the Dogecoin price movement has confirmed a ventilation of a descending triangle model. The price had struggled with a strong line of resistance trend, which finally forced him to fall below the crucial support of $ 0.2341. This ventilation marked a new hollow of 7 days to 0.22644, reporting a lower change on the market.
Technical indicators such as the MacD (Divergence of Mobile Average Convergence) also show signs of sloping momentum, the MacD and signal lines suffering a clear drop. This change suggests an increase in sales pressure and could further point out the drop in the price of Dogecoin. The current pivot levels indicate that the price is suspended just above the S1 support at 0.22836, with a potential drop to the S3 support level to $ 0.19361. This scenario could bring Dogecoin back under the critical level of $ 0.20 for the first time in months.
During network activity
In addition to the technical breakdown, the activity of the Dogecoin network has also decreased, which could be a sign of weakening of demand. According to Crypto Ali Martinez analyst, network activity has fallen at unprecedented levels since October 2024.
When network activity decreases, this often leads to a reduction in market demand, which can exacerbate the drop in prices. As fewer transactions occur on the network, merchants and investors can hesitate to join the assets, further falling down.
Can Dogecoin stage a rally?
Despite the negative technical indicators and the reduction in network activity, some still hope for a potential rally. Delay Tardigrade, a well -known analyst on X, stressed that Dogecoin is currently completing his fourth falling corner scheme. Historically, the drop in the area was a bullish scheme, and past eruptions have resulted in significant price increases.
For example, Dogecoin saw an increase of 88% in the last quarter of 2023 following a drop in the area. The second escape in early November resulted in a 208%price leap, while the third escape in the last quarter of 2024 increased the price by almost $ 0.50. With the current price sitting at a crucial level of support, some traders believe that another escape could occur, potentially pushing Dogecoin after the $ 0.50 bar.
The upcoming road for Dogecoin
Currently, the Dogecoin Future Price Department remains uncertain. On the one hand, technical rupture, the drop in network activity and the negative momentum indicators suggest a continuous downward trend, with a support of $ 0.20 potentially tested in the near future. On the other hand, the ditch diagram and the possibility of an escape can give hope to a strong rally.
Investors and merchants will have to closely monitor pricing and network activity to better understand the next Dogecoin decision. If the asset does not maintain support for key levels, a continuous decreased trend may be in the cards. However, if Dogecoin manages to break out of the current corner model, it could prepare the ground for a remarkable recovery and a price increase.
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