Dogecoin Fails $0.34 Breakout: Will Bears Retest $0.30?
Can the Dogecoin (DOGE) price hold above the $0.30 support zone for a potential double-bottom reversal?As Bitcoin fluctuates above the $93,000 level, the crypto market is experiencing increased volatility. The meme coin sector, in particular, is under significant pressure as market uncertainty rises.Dogecoin, Shiba Inu, and other leading meme coins are seeing heightened speculative activity. Over the past 24 hours, Dogecoin has dropped by 3.89% and is currently holding at $0.32.With a market cap of $48.2 billion, Dogecoin dominates more than 50% of the meme coin market, maintaining its strong influence despite the ongoing decline.Dogecoin Price AnalysisOn the 4-hour chart, Dogecoins price action shows a failure to break above the 38.20% Fibonacci level at $0.34356. With higher price rejections, DOGE is now retracing toward the 23.60% Fibonacci level at $0.31385, indicating persistent bearish sentiment.Currently, the retracement in Dogecoin price has reached $0.3262, creating its fifth consecutive bearish candle. This consistent downward movement underscores the strong selling pressure. Due to the prevailing bearish trend, the exponential moving average lines have given bearish crossovers and attained a negative alignment.Moreover, the RSI has dropped below the halfway mark, indicating a surge in selling pressure and supporting the ongoing bearish momentum. As a result, technical indicators are issuing a sell signal for Dogecoin, warning traders of potential further downside.DOGE Price TargetsThe Dogecoin price trend hints at a potential double-bottom reversal from the 23.60% Fibonacci level. If this reversal plays out, it could initiate a bullish recovery. Based on this assumption, a potential reversal will likely retest the neckline at the 38.20% Fibonacci level. In case of a breakout rally, DOGE could rechallenge the $0.40 mark. However, a bearish closing under the 23.60% Fibonacci level will put the $0.30 psychological zone at risk. A failure to hold this level will likely test the $0.265 support level, marking a significant drop. Hence, the ongoing retracement in the Dogecoin price reveals a downside risk of nearly 20%. The coming sessions will be critical in determining the coin's short-term trajectory.
Text source: The Crypto Basic
