Dogecoin Drops 17.2% From May High, Tests Key Support

Dogecoin, the popular meme cryptocurrency, is currently experiencing significant selling pressure after losing much of its bullish momentum from late April and early May. Technical analysis indicates that Dogecoin is hovering just above a critical support level, which, if broken, could lead to a downtrend.

Crypto analyst RLinda identified this key level at $0.214 on the TradingView platform, labeling it a retest of the panic zone. According to RLinda’s analysis, Dogecoin’s distribution phase between May 9 and 11 ended in the $0.2600 range, marking the conclusion of its latest bullish impulse. During this phase, Dogecoin lost all the potential it had accumulated earlier in the month.

Since then, the price has been steadily declining, entering what the analyst describes as the correction or dump phase. This has caused the meme coin to test the $0.214 level, the current panic zone. A confirmed breakdown below this panic zone, particularly beneath the $0.2135 support line, would not only liquidate long positions but also likely intensify selling pressure, potentially leading to an uncontrolled price decline.

This correction price action has been characterized by lower highs, forming a triangle pattern visible on the 2-hour timeframe. RLinda warned that if the triangle’s base is broken, this structural failure could reinforce bearish sentiment, opening the door to downside targets closer to $0.20 and possibly even $0.19.

The immediate resistance lies at $0.222 and $0.2307, representing key zones Dogecoin must reclaim to negate the current bearish setup. A move above these points, especially if the price consolidates above $0.23, will invalidate the bearish breakdown structure and could renew bullish sentiment. However, RLinda made it clear that such a scenario is only worth considering after a clear confirmation, as current momentum still favors sellers.

Support levels of $0.2145 and $0.2135 are currently the final shields holding back further declines. A close below $0.2135 would confirm the continuation of the downtrend and push the Dogecoin price into a lower consolidation zone, with limited immediate support until $0.20126 and $0.19298.

At the time of writing, Dogecoin is trading at $0.22, up 1.72% over the past 24 hours. This slight recovery hints at early signs of strength and may already be undermining the bearish setup. Although this slight recovery is not enough on its own to confirm a bullish reversal, it does show that buyers are attempting to regain some control. If this momentum can be sustained into the new week, it could gradually pave the way for a more sustained move higher for Dogecoin during the week.