Dogecoin, Next Is a Fall, Not a Rebound?...Market on 'Alert' Over $0.1 Collapse Theory

▲ Dogecoin (DOGE)

Dogecoin (DOGE) fell below the $0.1120 level and is once again under selling pressure. For a short-term rebound, it needs to recover the $0.1085 and $0.1115 resistance levels, but technical indicators still point to a bearish trend.

According to NewsBTC on May 8 (local time), Dogecoin fell below $0.110 and showed a trend below the 100-hour simple moving average. On the DOGE/USD hourly chart based on Kraken data, a downtrend line with resistance around $0.1085 was formed. NewsBTC analyzed that if Dogecoin remains below $0.1085 and $0.1115, the possibility of further decline could increase.

After closing below $0.1120, Dogecoin showed a decline, similar to Bitcoin (BTC) and Ethereum (ETH). Subsequently, it successively gave up the $0.110 and $0.1080 support levels and was pushed down to around $0.1050. The low was formed near $0.1058. The downward range extended from the high of $0.1172 to the low of $0.1058, and Dogecoin showed bearish signals at a level lower than the 23.6% Fibonacci retracement line of that range.

Even if a rebound occurs, the first hurdle is $0.1085. NewsBTC explained that this level also has downtrend line resistance. For buying pressure to regain strength, it must break past $0.110 and then the $0.1115 resistance level. $0.1115 also aligns with the 50% Fibonacci retracement line of the decline from the $0.1172 high to the $0.1058 low. The original text stated that if the closing price forms above $0.1115, there could be room for an increase to the $0.1132 and $0.1145 levels.

Conversely, if Dogecoin fails to recover $0.1085, the downward trend could continue. NewsBTC presented $0.1050 as the first downward support level and analyzed that the next major support level is $0.1020. The key support level was identified as $0.10. If this level breaks, Dogecoin could be pushed down to $0.0880 or even $0.0820 in the short term, according to forecasts.

Technical indicators also support the selling dominance. The DOGE/USD hourly Moving Average Convergence Divergence (MACD) is increasing downward pressure in the bearish zone, and the hourly Relative Strength Index (RSI) remains below 50. NewsBTC suggested $0.1050 and $0.1020 as key support levels, and $0.1085 and $0.1115 as key resistance levels.

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