Dogecoin Faces Heavy Selling Pressure but Technical Setup Hints at Possible $1 Surge
The standard meme-coin Dogecoin (DOGE) is beneath mounting stress after a 30 % drop from its September highs, but a contrarian technical setup suggests {that a} rebound to the $1 degree would possibly nonetheless be in play.
While the present setting is dominated by promoting stress and low institutional curiosity, some chart patterns deserve a more in-depth look.
From Crash to Compression: Dogecoin Under Pressure
Dogecoin’s worth tumbled from round $0.3066 to roughly $0.198, marking a dramatic 30 % decline that has shaken short-term holders. On the technical entrance, DOGE broke beneath a consolidating upward wedge, and a “dying cross” is looming because the 50-day EMA approaches a crossover beneath the 200-day.
Analysts warn this construction has traditionally signaled deeper losses. Support at $0.1515 is beneath watch (about 22 % beneath present ranges), whereas a breakdown beneath $0.0570 may open the door to an excessive danger situation (-90 %) driving on a bearish flag on the weekly chart.
Adding to the stress, the recently-launched DOGE ETF noticed solely round $30.7 million in property, far beneath rival merchandise and suggesting weak institutional demand. The steep 1.5 % expense ratio additional dampens its enchantment.
Technical Setup: Danger Ahead, But Also Hope
Despite the gloom, Dogecoin reveals some intriguing longer-term patterns that trace at the potential of reversal. On one hand, momentum indicators, like MACD and MFI, level to weakening shopping for energy and rising dominance of sellers. This helps the near-term bearish case.
On the opposite hand, a long-term ascending channel since 2021 reveals DOGE buying and selling close to its decrease boundary, with the Stochastic RSI at traditionally low ranges, just like prior pre-rallies.
Analysts spotlight that if DOGE can maintain key assist round $0.19 and break above resistance close to $0.30, the trail towards $0.50–$1 turns into extra believable. A key resistance level lies close to $0.21, also known as a “provide wall” resulting from heavy prior accumulation.
Each time DOGE approaches the resistance degree, promoting stress usually will increase, inflicting repeated rejections. Thus, for DOGE to flip the narrative, a clear breakout above $0.21 coupled with quantity can be important.
What Comes Next? Cautiously Optimistic Outlook
In the brief time period, Dogecoin faces extra seemingly draw back or sideways motion until recent purchaser momentum emerges. But if assist holds and a breakout happens, the long-term technical construction suggests upside potential towards the $1 mark.
The situation isn’t assured, it requires a confirmed reversal, rising quantity, and a shift in sentiment. For merchants utilizing the 15-minute and 5-minute timeframes (as you deal with), this implies waiting for a higher-timeframe shut above $0.30, plus intra-day quantity spikes. Absent that, warning stays justified.
Cover picture from ChatGPT, DOGEUSD chart from Tradingview
