Dogecoin Tests $0.168 Support Amid 30% Decline, ETF Decision Looms

Dogecoin’s price is currently at a critical juncture, testing the $0.168 area for the second time since mid-April. This level is crucial as a clear break below it could send the meme coin into a downward spiral. Both bulls and bears are closely monitoring every price movement.

According to crypto expert Ali Charts, Dogecoin has experienced a roughly 30% decline from its mid-May high, bringing it back to the $0.168 mark that previously acted as support in April. If prices drop below this level on a weekly close, there is minimal buying pressure to halt the fall. Below $0.168 lies a "gap area" where past buying activity was sparse, which could lead to steeper losses and rapid price movements.

The current chart pattern forms part of a four-year cup-and-handle setup. The lower boundary of a symmetrical triangle aligns with the point where the handle meets the cup. A clean break above the triangle’s upper trendline could target a price near $0.75, according to the 1.618 Fibonacci extension of the cup’s depth. Achieving $0.75 would represent a 350% gain from current levels.

Momentum indicators are showing signs of weakness. After a brief golden cross in May, the 50-day moving average slipped under the 200-day in early June. The MACD line is widening beneath its signal, suggesting longer-term selling pressure. The RSI sits at 42, below the neutral 50 mark, and is drifting lower, indicating more sellers than buyers. With these readings turning sour, bulls need a strong bounce around $0.168 to maintain their position.

All eyes are now on June 15, when US regulators may rule on a spot Dogecoin ETF. Approval would allow traditional money to flow in from big funds, potentially boosting Dogecoin’s price. Conversely, a thumbs-down or delay could spark fresh sell-offs, making or breaking the next leg of Dogecoin’s move.

Dogecoin is currently trading at $0.16. This week’s action around $0.168 will be crucial in determining if Dogecoin can stabilize. Holders and traders should watch volume, weekly closes, and the upcoming ETF decision. If support holds, a rebound may be possible. If it breaks, lower levels could come into view quickly. Either way, Dogecoin is at a pivotal moment, and the next big clue could significantly impact its trajectory.