Dogecoin is retesting the psychological support of $0.10 after a 20% drop in market capitalization in four days. If Dogecoin falls below $0.10, the bearish pennant and Elliott wave correction signals will further decline. If $0.10 holds, Dogecoin could rebound above $0.1130. Otherwise, support is at $0.097 and $0.092.
Dogecoin, the king of meme coins, is at a critical point. The $0.10 level, an important psychological support, is being tested once again. The global cryptocurrency market is facing a flood of supply as market uncertainty increases. Will Dogecoin rebound or continue its downward trend?
Renowned crypto analyst Ali Martinez highlights that Dogecoin has retested the falling wedge breakout. DOGE is currently trading around $0.10, with an intraday increase of 1.07% after a 20% drop in market capitalization over 4 days. The price opened at $0.10457 and the bulls are attempting a recovery.
The price trend suggests a possible reversal after the retest. The Morningstar pattern forming on the intraday chart suggests bullish momentum. However, the overall market selling pressure is difficult to ignore. If DOGE falls below the $0.10 support, the wedge breakout will be considered invalid and the risk of further decline will increase.
Dogecoin bearish pennant increases pressure
The 4-hour chart reveals a bearish pennant formation with increasing selling pressure. The Elliott wave pattern suggests a 5-wave correction consistent with this bearish signal. If DOGE falls below $0.10, the next support levels will be $0.097 and $0.092.
But there is also a glimmer of hope. Although the MACD indicator is showing signs of a bullish crossover, the downtrend at the 50-100-200 EMA could act as dynamic resistance and limit the potential for a significant recovery.
DOGE’s future is at risk. Due to high uncertainty, psychological support at $0.10 could determine the next big move in the market.
