DOGE Falls Below Key Support Zone After Extended Downtrend
Dogecoin (DOGE) has seen a sharp decline of more than 22% within the last 36 hours, falling from around $0.0036 to $0.00269, according to recent market data. The drop has placed DOGE near a critical support zone that traders are watching closely for potential reversal or further breakdown.
The 4-hour chart shows a prolonged bearish trend, with DOGE consistently forming lower highs and lower lows since late July. After failing to break the resistance near $0.0037 (highlighted in red), sellers regained control, pushing the price below the minor support around $0.0031 (yellow zone) and now testing the major demand zone near $0.0026 (green zone).
Volume analysis indicates heightened selling pressure, with a noticeable spike during the breakdown. This suggests strong bearish momentum and limited buying interest at current levels.
According to BITX technical analyst , “DOGE breaking below the $0.0031 support was a key bearish signal. If the price fails to hold the $0.0026 demand zone, we could see another leg down toward $0.0024 or even lower.”
Historical price action also supports caution. Previous rebounds from similar zones were followed by short-lived recoveries, making the current structure vulnerable to further declines.
However, some traders argue that oversold conditions could trigger a short-term bounce, especially if Bitcoin stabilizes or recovers. “Dogecoin’s RSI on lower timeframes suggests possible relief, but without strong buying volume, any recovery might face resistance around $0.003,” .
What to Watch Next
If DOGE holds above $0.0026, a potential retest of $0.0030–$0.0031 could occur. Conversely, a breakdown below $0.0026 would likely accelerate the bearish trend. Traders should keep an eye on volume spikes and Bitcoin’s price movement, as these will strongly influence DOGE’s next direction.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.