Dogecoin is approaching a critical support level following a significant market breakdown that has amplified bearish pressure throughout the broader trend. The meme coin has faced difficulties in stabilizing, with sellers increasing their influence and pushing its price towards levels not observed in recent days. Traders are closely monitoring whether DOGE can establish a base or if the current decline will continue into deeper corrective territory.
Dogecoin Drops Toward Key Support as Momentum Weakens
As of this writing, Dogecoin was trading at $0.1327, reflecting an 11.28% decrease over the last 24 hours. The asset has experienced a 12.91% decline over the past seven days and a substantial 28.94% drop across the last 30 days, indicating a waning bullish conviction as sellers accelerate the pullback.
On the weekly chart, Dogecoin is trading below major Fibonacci retracement levels. The asset failed to maintain its position above the 0.618 retracement, which is situated around $0.20, before breaking below the 0.786 level near $0.17. The 1.0 Fibonacci region, approximately at $0.19, now serves as the next liquidity zone as the trend shifts downwards.
A sustained close below $0.13 could potentially open the path towards the 1.618 extension, which is projected to be around $0.02. However, a rebound at the current support level might signal an early stabilization if DOGE manages to reclaim the bands between $0.16 and $0.19. The Relative Strength Index (RSI) on the weekly timeframe is currently at 37.72. This reading places momentum below the neutral 50 line and indicates a downward trend. The RSI remains below its moving average and shows no bullish divergences, conditions that are often associated with prolonged corrective phases.
Analysts Warn of Extended Correction but Highlight Cycle Setup
Trader Tardigrade commented on the recent market breakdown, noting that Dogecoin's latest monthly candle closed below its long-term ascending support trendline. He characterized this move as a confirmed breakdown, observing that similar events have occurred in previous cycles. According to his analysis and accompanying chart, these breakdowns have often signified structural shifts in DOGE's long-range trajectory and have historically preceded significant upside phases.
Furthermore, he suggested that the latest breakdown could potentially trigger what he termed a "massive Doge season." His long-term target for Dogecoin exceeds $6.5. A rally to $6.50 from the current price of $0.1376 would necessitate an approximate surge of 4,624%, underscoring the significant scale of the move he has outlined.