Dogecoin has breached a crucial support level that held for nearly a year, raising concerns about further downside movement. The memecoin dropped 2.18% to trade at $0.09083 at press time.
The breakdown comes as bearish sentiment dominates the broader cryptocurrency market. Trading activity has intensified despite the price decline, with volume jumping 11% to $845 million over the same period.
Support Break Opens Door to Deeper Losses
The daily chart shows DOGE losing its $0.095 support level, a price floor that has held since February 2024. This technical failure represents a significant shift in market structure.
Analysts warn that failure to reclaim this level could trigger a 35% decline in the coming days. The next minor support sits at $0.0883, which may offer temporary relief. A failure to hold that level could push prices down to $0.05710, the next major support zone.
The Average Directional Index currently reads 51.33, well above the critical 25 threshold. This reading confirms that strong downward momentum is driving the current price action.
Expert Claims Current Levels May Represent Bottom
Not everyone shares the bearish outlook. A prominent crypto analyst recently posted on X that current prices may represent a buying opportunity.
The expert referenced historical patterns, noting that investors who missed DOGE at $0.0002 and $0.002 should pay attention now. The analyst presented a monthly chart showing an ascending trendline that has supported DOGE since 2017.
According to this analysis, DOGE is testing its third major support on this trendline. Previous tests in 2017 and 2021 preceded substantial rallies. The chart suggests the overall trend remains intact despite recent weakness.
Futures data reveals strong bearish sentiment among leveraged traders. Short positions currently outnumber long positions by a significant margin.
CoinGlass data shows traders have established $14.46 million in short positions compared to $8.26 million in long positions. These positions cluster around key technical levels at $0.0888 on the downside and $0.0948 on the upside.
The concentration of leveraged bets at these levels creates potential for sharp moves. A liquidation cascade could trigger rapid price movement in either direction.
Source: https://coinpaper.com/14511/dogecoin-price-faces-35-decline-risk-after-losing-critical-support-at-0-095
