Dogecoin on the Edge: Meme Coin Faces Major Breakdown Risk

Dogecoin on the Edge: The Price Recovery Stalls as Bears Regain Control

Dogecoin’s V-shaped recovery is about to run out of room at $0.168. As selling pressure increases, the meme coin is having difficulty maintaining a triangular formation at $0.15936. With a $23.71 billion market valuation, the largest meme coin has had a 2.64% decline in the past day. Memes are positioned for strong forward or backward movements as long as market volatility continues. Still, it’s unclear if Dogecoin will experience a sharp decline to $0.13.

DOGE has fallen below the 4-hour chart’s 50 and 100 EMA lines due to short-term pressure. Additionally, the MACD and signal lines have crossed in a negative manner as a result of the abrupt drop in bullish momentum. As a result, technical signs point to a possible meltdown and price decline caused by a triangular pattern.

DOGE Faces Downside Risk, But This Bullish Pattern Could Change Everything

As evidenced by the 0.82% increase in open interest, rising bearish sentiments coincide with higher trading activity. With the funding rate on Bybit falling to 0.0007%, the open interest is currently $1.57 billion. Analyst Trader Tardigrade, however, is still bullish about DOGE in spite of the growing downside risk. A possible rally was indicated by the analyst’s identification of an inverted head-and-shoulders pattern on the 4-hour price chart.

The $0.17 supply zone corresponds to the neckline of the pattern. A break over this level might push DOGE closer to $0.20. The current price of Dogecoin is close to the 38.20% mark at $0.15957, according to Fibonacci retracement levels. The price may drop to the 23.60% barrier at $0.14910 after a breakdown if there is a significant correction.

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