Dogecoin Enters Downward Channel...Eventually Retreats to $0.08 Line

▲ Dogecoin (DOGE)

Dogecoin failed to overcome the $0.1100 resistance level and turned bearish, facing the risk of a major support level collapse.

Cryptocurrency analyst Aayush Jindal analyzed in an article published on April 9 (local time) that Dogecoin (DOGE) failed to withstand short-term downward pressure and was pushed down to the key support zone of $0.0925. Jindal pointed out that Dogecoin fell below $0.1000 and $0.0950, following the downward correction trend of Bitcoin (BTC) and Ethereum (ETH).

Technical analysis shows that Dogecoin accelerated its decline by breaking below an ascending trend line near $0.0945 on the hourly chart. The current price remains below the 100-hour Simple Moving Average, indicating weakened bullish momentum. Specifically, the $0.0925 level, which is the 61.8% Fibonacci retracement of the rally from the $0.0811 low to the $0.1109 high, is acting as a major defense barrier.

If the downward support level breaks, Dogecoin's price is expected to become even more precarious. Jindal predicted that if the closing price forms below $0.0925, further declines could occur, passing through $0.0910 and $0.0880, and in the worst case, reaching the $0.0810 level. The Moving Average Convergence Divergence (MACD) is currently forming a downward curve in the bearish zone, and the Relative Strength Index (RSI) has also fallen below 50, indicating dominant selling pressure.

For price recovery, reclaiming the $0.0965 and $0.1000 resistance levels sequentially must precede. Jindal analyzed, "Dogecoin needs to stabilize above $0.1000 to gain the momentum to retest the $0.1100 resistance level." If it successfully breaks above $0.1100, the next target price would be $0.1250, and a resumption of the uptrend rally could be expected.

Dogecoin's future direction depends on whether it defends the $0.0925 support level and the overall market liquidity flow. As Bitcoin battles around the $71,000 mark, the volatility of Dogecoin, the leading memecoin, demands investors' caution. With technical indicators pointing downwards, a cautious approach is needed to guard against a support level collapse.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*