Dogecoin continues to struggle as bearish momentum dominates the cryptocurrency market. The meme coin has dropped 3.26% in the last 24 hours, trading at $0.08978 at the time of writing. Technical indicators suggest further downside may be imminent as key support levels come under threat.
Trading volume remains subdued, indicating that investors are hesitant to enter positions at current price levels. This lack of conviction has left DOGE vulnerable to additional selling pressure.
Short-Term Outlook Points to Further Decline
The hourly chart reveals that Dogecoin is testing critical support at $0.08940. Bulls must defend this level to prevent a deeper correction. A failure to bounce before the daily close could trigger a breakdown to the $0.089 region.
Technical patterns show no clear signs of a reversal. The asset continues to trade below major moving averages, confirming the bearish structure. Momentum indicators remain tilted to the downside, suggesting sellers maintain control.
Volume analysis paints a concerning picture for those hoping for a quick recovery. The absence of substantial buying activity means bulls lack the firepower needed to reclaim lost ground. Without a significant influx of capital, DOGE appears poised to test lower support zones.
The $0.08675 level has emerged as the next major line of defense. A move to this price point would represent a substantial retreat from recent highs. Market participants are watching this zone closely, as a breakdown could accelerate the selling cascade.
Medium-Term Technical Breakdown Raises Concerns
The weekly timeframe presents an even more troubling scenario for Dogecoin holders. The cryptocurrency has broken below the $0.095 support level, a development that carries significant implications. This breakdown invalidates previous consolidation patterns and opens the door to extended losses.
If the current weekly candle closes beneath $0.095, the technical damage will be confirmed. Such a scenario would likely attract additional selling as stop-loss orders are triggered. The path of least resistance would point toward the $0.080 zone, where stronger support may materialize.
Historical price action suggests that $0.080 represents a major demand area. This level has previously acted as a springboard for rallies during past corrections. However, reaching this target would mark a decline of more than 11% from current levels.
The broader cryptocurrency market environment provides little relief. Bitcoin and other major digital assets have also struggled to gain traction. This lack of leadership from larger cryptocurrencies typically weighs on altcoins like Dogecoin.
Source: https://coinpaper.com/14505/dogecoin-price-faces-critical-support-test-as-bears-target-0-080-level
