Dogecoin Drops 4% to $0.1729 Amid Broader Crypto Market Decline
2min read Dogecoin's price has experienced a significant decline, dropping 4% to $0.1729 over the past 24 hours. This downturn is part of a broader market trend, with the overall crypto market decreasing by 1% to $2.89 trillion. Despite this setback, Dogecoin has established a strong support level at $0.16, which bulls are attempting to leverage for a recovery.
On April 23, Dogecoin's price surged past $0.1700, reaching a high of $0.1852 before retracing below $0.1800 and $0.1750. The bulls have since established a crucial support level at $0.1687. However, the stability of this support level remains uncertain. Various crypto analysts are optimistic about a potential rally, with TraderTardigrade noting that the DOGE/BTC pair has broken out of a descending trendline, suggesting that Dogecoin is poised for a new surge.
Traders are closely monitoring whether Dogecoin can sustain its position above $0.1687. If it fails to do so, the price could drop further to $0.1550 or lower. Conversely, if Dogecoin maintains its position above the $0.1650 support level, it could potentially breach the resistance zone at $0.1800. The bulls need Dogecoin to surpass the $0.1800 resistance level to gain market control, as this mark has proven to be a significant resistance point in recent trading dynamics.
Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are crucial for assessing Dogecoin's price movements. The RSI currently shows a slight retracement at 54.34, indicating that there is still room for an upside before the meme coin is considered overbought. The bullish MACD indicator suggests that traders should rally behind DOGE. Moving beyond $0.1800 could create opportunities for Dogecoin to grow its price, with the next resistance levels at $0.1850 and $0.1920. If the meme coin maintains positive momentum, it could reach the $0.200 price point, providing traders with added profits.
However, any continued upward movement from Dogecoin depends heavily on the strength of the resistance it encounters, as $0.1650 stands as its main support for an upward trajectory. The anticipated price jump from $0.1650 requires traders to recognize potential bearish market moves. If the $0.1800 resistance level proves too strong, Dogecoin risks a new price decrease. Two vital support zones to monitor are $0.1720 and $0.1705. If prices surpass these support levels, the accelerating downturn will reach the $0.1550 region.
In the coming days, Dogecoin's price movements will be decisive due to conflicting signals displayed by technical indicators. The future price movement for Dogecoin may rise above the $0.1650 support before climbing further, or the bears might force it towards lower levels. Traders and investors should cautiously monitor the support and resistance levels, as a breakout in either direction will determine DOGE's price movement.
