Key Insights:
- DOGE breaks $0.16 support, risking a drop to $0.08.
- Whales accumulated 1.7 billion DOGE despite bearish sentiment.
- RSI suggested oversold conditions, hinting at a potential rebound.
Dogecoin (DOGE) price has slipped under a crucial support level, sparking fears of a deeper correction. Analysts suggested that the bearish move could push DOGE toward $0.08.
On the other hand, they also speculate that growing on-chain activity might provide hope for a rebound. Dogecoin was trading at $0.1587, down 8.41% in the last 24 hours. It dropped to $0.1429 before bouncing back, but overall market sentiment remains bearish.
Crypto analyst Ali Martinez pointed to the $0.16 level as a key point for the memecoin. In a recent X post, he noted that the token has been trading inside an ascending channel for nearly a decade.
According to him, holding this level could pave the way for a move toward $2 in the months ahead. However, Dogecoin price dip below $0.16 now doubts that scenario.
Breakdown or a Trap for The Bears?
Dogecoin’s move below $0.16 suggested a potential breakdown. Historically, similar patterns have led to extended bearish trends, making traders cautious about what comes next.
TradingView chart showed that DOGE was struggling below key Fibonacci retracement levels, with resistance at $0.1836 and $0.1947.
The 50-day and 200-day EMAs of $0.2465 and $0.2512 added to the challenge. This makes any recovery attempt for Dogecoin price an uphill battle.
However, the Relative Strength Index (RSI) at 28.81 tells a different story. With Dogecoin now in oversold territory, past trends suggest the possibility of a bounce from these levels.
If bulls regain momentum, the next test would be $0.19 to $0.20. The 1.618 Fibonacci extension suggests $0.08 as the next major support, meaning DOGE could still head lower.
Whales are buying despite Dogecoin price drop
Even as Dogecoin price struggles, whale activity is picking up. Data from Coinglass showed that $31 million worth of DOGE had been moved out of exchanges in the past 24 hours. It is a sign that some traders might be accumulating.
On-chain figures also showed a 270% surge in active addresses. It jumped from 71,750 to 264,000 in a single day.
Analyst Ali Martinez highlighted that whales bought 1.7 billion DOGE in 72 hours. It further supported the accumulation theory. While this could indicate confidence in a future rally, it does not guarantee immediate upside.
Pseudonymous analyst TheGift94 has identified $0.16 and $0.13 as the last major support zones. If DOGE can hold above these levels, a rebound might be in the cards. However, losing them could accelerate losses toward $0.08.
Dogecoin price is at a make-or-break point. If buyers can push it back above $0.16, momentum could shift, and a move of DOGE toward $2 might still be on the table.
However, if the downtrend of the Dogecoin price continues, the next stop could be $0.08. There, traders expect strong buying interest.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
