Dogecoin Plunges as Triangle Breakdown Ignites Bearish Storm

Dogecoin, the popular meme-based cryptocurrency, has recently experienced a significant price movement that has left traders concerned. The price chart on the 1-hour timeframe revealed a symmetrical triangle pattern, which consolidated between $0.236 and $0.224 before breaking downward. This invalidated the bullish target of $0.197 and confirmed the bearish momentum, with Dogecoin dropping below critical support levels.

Fibonacci retracement analysis showed that Dogecoin tested the 61.8% level at $0.218 before continuing its downward trend. The MACD indicator reflected a bearish sentiment, with the MACD line crossing below the signal line and histograms turning red at the time of writing. Additionally, the Cumulative Volume Delta (CVD) on the 4-hour chart peaked at -7.64B, signaling heavy selling pressure. These factors aligned with the triangle's bearish breakout, negating the initial upside projection and reinforcing downward momentum.

Dogecoin's spot netflow data over the last 24 hours, as shown in the 1-day chart, reflected substantial outflows totaling -$3.1M. The red bars dominated the chart, indicating strong selling pressure. This pattern began in mid-February, with a major outflow spike observed on the 24th of February, coinciding with Dogecoin's price drop below $0.22. The netflow chart mirrored price action as Dogecoin declined from $0.2511 to $0.2123. Consistent negative netflows suggested that investors exited positions, reducing buying support and invalidating the initial bullish $0.197 target.

Further, Dogecoin's volatility data, tracked in the 4-hour chart, showed a declining trend over the past 24 hours. The Volatility Index dropped to 0.23155, indicating reduced price fluctuations. The chart displayed a steady decline in volatility, with Dogecoin stabilizing near $0.2123 after its sharp drop. This decline in volatility followed the symmetrical triangle's breakdown, reinforcing bearish sentiment. A lower volatility environment often signals that traders paused aggressive market activity, reducing the likelihood of sharp rebounds.

Dogecoin's recent price action, declining netflows, and reduced volatility point to a bearish short-term outlook.