Recent weeks have seen significant fluctuations in the price of Dogecoin. Technical analyses and blockchain data indicate a potential decline.
Critical Channel Breaks and Increased Selling Pressure
The downward break of the ascending parallel channel, which Dogecoin has been trading within for years, is regarded as a strong bearish signal by analysts. Technical indicators reveal that the price was rejected at the 0.786 Fibonacci retracement level, which had previously functioned as a significant resistance point. Now, the selling pressure emanating from this zone suggests that downward momentum is increasingly building.
$0.135 Threshold May Determine New Direction
Testing the $0.135 price level is considered critical from a technical standpoint. This level is closely monitored by investors as it serves both support and resistance functions. Analysts suggest that if the price can maintain itself above this point, Dogecoin might enter a new upward trend. Conversely, failure to hold this level could lead to a continued decline towards lower price points.
RSI Indicator Shows Promise, Yet Uncertainty Persists
While Dogecoin’s price declines, rising lows in the RSI (Relative Strength Index) are interpreted as a positive technical signal. This situation may indicate a weakening of selling momentum. However, experts caution that such signals alone are insufficient and must be supported by price movements.
The analysis of the current situation in the Dogecoin market points to both positive and negative factors. Investors need to remain vigilant regarding changes in the technical levels.
