Changes are occurring in the Dogecoin market which could lead to a significant price drop. In this article, we examine the asset's current position and possible scenarios for its movement.
Analysis of Dogecoin Price Action
The price of Dogecoin has formed a descending triangle on the daily chart, with price action compressing towards the apex. This pattern suggests a potential bearish continuation, evidenced by the price trading significantly below the 200-day moving average (~$0.248).
Support Levels and Potential Forecasts
Currently, the immediate horizontal support zone is around $0.165–$0.17. If the price closes below this level, it could open the avenue for a drop to the next significant support around $0.145, defined by the previous demand zone within the triangle. However, as long as the $0.165–$0.17 zone holds, there’s still a chance for a range-bound bounce.
Indicators and Their Impact on Future Price
From an indicators standpoint, the bearish scenario appears more likely at this stage. The price is trading well below both short-term 20-day EMA and long-term 200-day SMA, both of which are trending downward. The RSI hovers around 36, approaching oversold levels. The MACD also remains in negative territory.
At this moment, Dogecoin is in a critical position, and further price movements will depend on whether the asset can maintain key support levels or if a breakout downwards occurs.
