Dogecoin Drops 13.26% Weekly, Tests $0.135 Support Amid Bearish Pressure

Dogecoin has recently experienced a significant downturn, with its price slipping below a key trendline that has guided its price since 2018. The current price of Dogecoin stands at $0.1506, despite a daily gain of 7.73%, the token has lost 13.26% over the last week. This breakdown has raised concerns among market observers, as it aligns with a rejection near $0.16395, which corresponds to the 0.786 Fibonacci level. According to a technical researcher, if this structure fails to recover quickly, Dogecoin could see prices falling as far as $0.06167. This area is being watched as the next major support, and a move to that level would represent a 59% drop from the current market price.

A transfer of 300 million DOGE to Binance has added to traders’ caution. The DOGE, worth around $41.7 million, came from a large holder. Moves of this size often raise concerns about potential market sell-offs. The transaction appeared shortly after Dogecoin lost its trendline support, adding to bearish pressure. A blockchain data analyst monitoring the activity noted that the timing of this transfer doesn’t look random, raising questions about whether more downside is expected. Some traders believe such transfers can increase volatility if large-scale selling follows.

Dogecoin is currently testing the $0.135 level, an area that played an important role in previous price moves. This level acted as both resistance and support during a range-bound phase in early 2023. Market participants are closely monitoring whether the price can stabilize here. Technical patterns show a possible bullish divergence on the daily chart. While the price continues to dip, the Relative Strength Index (RSI) is making higher lows. A market analyst noted that this kind of RSI movement suggests sellers might be slowing down, but it’s too early to say if it will lead to a real rebound. A clean hold above $0.135 could point to short-term recovery, while a break below may open the door to $0.12 or $0.10.

In the derivatives market, Dogecoin’s open interest has grown, showing some traders are still holding long positions. However, the balance between longs and shorts has shifted. The long-to-short ratio fell in just one day, pointing to more traders preparing for downward moves. Traders are now waiting to see if the price can recover above $0.18 or if lower levels come into play.

Despite the bearish outlook, there are some signs of potential bullish divergence on the Relative Strength Index (RSI). This indicator suggests that there could be a reversal in Dogecoin's price trend, although it is too early to confirm this possibility. The key support level at $0.06167 is being closely watched, as a breakdown below this level could trigger a more significant sell-off. The recent decline in Dogecoin's price has been attributed to a broader market downturn, which has affected many cryptocurrencies. However, Dogecoin's high volatility and reliance on social media hype have made it particularly susceptible to price swings. The cryptocurrency's future price movements will depend on various factors, including market sentiment, technical indicators, and whale activity. Investors are advised to exercise caution and conduct thorough research before making any investment decisions.