Dogecoin is under pressure. The popular meme cryptocurrency is trading at around $0.09216, down approximately 0.66% in the past 24 hours. The decline has placed DOGE at a pivotal technical threshold, and the next move could define its short-term trajectory. Both bulls and bears are watching closely as the token sits on a knife’s edge.
The broader crypto market remains volatile. Against this backdrop, Dogecoin’s struggle to hold ground has drawn attention from traders and analysts alike. Technical signals are flashing caution, yet pockets of optimism remain for those willing to look past the near-term noise.
Bears Build a Case for Deeper Losses
The technical picture for Dogecoin leans bearish. The token is trading below several key moving averages, including short- and long-term exponential and simple moving averages. This positioning typically signals sustained selling pressure. A swift recovery becomes difficult without a meaningful surge in buying volume.
Analysts at Cheds Trading have identified $0.06 as a realistic downside target if current support fails. That level sits well below present prices and would represent a steep markdown from where DOGE trades today. The $0.090 zone is now serving as the last meaningful line of defence. A confirmed break below it could accelerate losses.
Weekly chart data adds weight to the bearish case. Bollinger Bands indicate that Dogecoin has not yet reached oversold extremes on longer timeframes. That means additional downside remains technically possible before the token finds a natural floor. Low trading volumes compound the concern. Thin market participation makes it harder for buyers to absorb selling pressure efficiently.
Exchange flow data also raises flags. Ongoing distributions to crypto exchanges suggest that some holders are moving coins into position to sell. When supply hits exchanges in large volumes, it often foreshadows further price declines. Unless demand rises to meet that supply, downward pressure is likely to persist.
Bulls Cling to $0.098 as a Turning Point
Not every indicator points downward. Some traders see the $0.090 support zone as a potential base for a recovery. If buyers defend this level convincingly, a short-term rally becomes possible. The key resistance level bulls must clear is $0.098. A sustained break above that mark could shift sentiment quickly.
Beyond $0.098, the next targets come into view at $0.109 and $0.118. Reaching those levels would require genuine momentum and a broader improvement in market conditions. Neither is guaranteed, but the technical setup leaves room for the move if buying pressure builds.
One encouraging data point for bulls is the Relative Strength Index. Even as Bitcoin has faced its own headwinds, Dogecoin’s RSI has shown marginal improvement. Positive divergence of this kind can signal that selling momentum is fading. Traders often interpret such readings as early indicators of a potential trend shift.
It is worth noting that divergence alone does not confirm a reversal. Price action must follow. For a bullish case to take shape, DOGE needs consistent closes above key resistance levels, backed by increasing volume. Without that confirmation, the RSI signal remains speculative.
Source: https://coinpaper.com/14885/dogecoin-price-at-breaking-point-will-doge-hold-0-090-or-crash-to-0-06
