Will Dogecoin Hold the $0.30 Support, or Will Sellers Push It to $0.26?

Will Dogecoin Hold the $0.30 Support, or Will Sellers Push It to $0.26?

With Bitcoin retreating below the $100,000 threshold, the meme coin market has entered a sharp downtrend. The total market cap for meme coins has dropped to $90.46 billion, and Dogecoin has experienced an 11% decline in the past 24 hours.

The growing selling pressure is now testing Dogecoin’s psychological support level at $0.30. As bearish sentiment dominates, the critical question remains: can Dogecoin hold this support, or is a further decline to $0.26 imminent?

Dogecoin Price Analysis

On the 4-hour chart, Dogecoin price action reveals a breakdown of a key local support trendline. This follows the coin’s failure to sustain dominance near the 50% Fibonacci retracement level at $0.35321. The breakdown signals an increase in bearish momentum, putting significant pressure on the remaining support levels.

Over the past 12 hours, Dogecoin has formed three consecutive bearish candles, representing a 10.77% price drop. This drop pushed the price below the 38.20% Fibonacci level at $0.33. Additionally, the bearish trend has triggered a death cross between the 50- and 200-EMA lines, with a potential negative crossover between the 100- and 200-EMA lines looming.

If this crossover materializes, it could amplify selling pressure and complicate any potential recovery.

The RSI on the 4-hour chart has also dropped below the oversold threshold, reflecting the strong bearish sentiment. Sellers appear to have firm control, leaving bulls struggling to stage a comeback.

DOGE Price Targets

Currently trading at $0.3130, Dogecoin is poised to test its critical support at $0.30. This level aligns with the 23.60% Fibonacci retracement, adding to its technical importance. Since late December of last year, Dogecoin has managed to sustain dominance above this support.

However, a decisive close below $0.30 could signal the beginning of a significant correction. In such a scenario, the next key support lies at $0.265, followed by the psychological threshold at $0.20.

On the flip side, if bulls can defend the $0.30 zone and trigger a reversal, the price could retest the broken horizontal resistance at $0.33, offering a glimmer of hope for recovery.

In Summary: The $0.30 support level holds critical significance for Dogecoin as sellers continue to dominate. While a bounce from this level could revive bullish momentum, a breakdown may lead to a deeper correction, putting $0.265 and $0.20 in focus.