Dogecoin News Today: Dogecoin Falls Below $0.25 as Bears Target $0.142 Amid Weak Bitcoin Rally

Dogecoin traders are closely watching the $0.196 level as a critical support zone following a breakdown from the $0.25 range high. The inability to defend this level last week signaled a shift in momentum to the bearish side, raising the likelihood of a further descent toward the range low of $0.142. The 50-period Moving Average coincides with the $0.196 mid-range level, offering a potential floor for near-term price action. A drop below $0.195 would confirm the bearish trend and suggest a continued move toward $0.142.

Despite the prevailing bearish pressure, the on-chain liquidation heatmap indicates that liquidity clusters exist just below the $0.2 level, suggesting the possibility of a short-term price bounce. The $0.227 and $0.25 levels remain significant price magnets, highlighting the potential for volatility around these areas. These dynamics mean that while the broader trend is bearish, short-term traders may still find opportunities for limited rebounds.

Technical indicators reinforce the bearish bias in the short term. The On-Balance Volume (OBV) has recorded a new low compared to the previous week, and the Relative Strength Index (RSI) has fallen below the neutral 50 level, both of which suggest that sellers are in control. These developments, along with the failure to hold the $0.25 level, have prompted many swing traders to wait for clearer signals before opening short positions.

The price action of Dogecoin has also been influenced by Bitcoin’s recent performance. While Bitcoin has remained within a range of $116.7K to $122K, recent selling pressure pushed it below the range low over the past 24 hours. Dogecoin showed little strength during this period, with the $0.25 level easily breached. A potential Bitcoin rebound above $116.7K could provide a tailwind for Dogecoin, increasing the likelihood of a price bounce toward $0.23 in the short term.

In summary, the $0.196 level has become a key focal point for Dogecoin traders, with the next few days likely to determine whether the coin stabilizes or continues its downward trend. Investors should closely monitor technical indicators and broader market sentiment, particularly Bitcoin’s performance, to assess potential turning points in the market.

Source: [1] Analyzing why DOGE traders should watch $0.196 next (https://ambcrypto.com/dogecoin-analyzing-why-doge-traders-should-watch-0-196-next/)