The crypto industry’s largest memecoin, Dogecoin, started the week on an intense volatility streak amid the threat of falling below key support.
Dogecoin (DOGE), a popular cryptocurrency, is facing a critical moment. The dog-themed token is approaching the $0.30 support level, and traders are unsure if it will hold or if the price will fall to $0.26.
This uncertainty after Bitcoin (BTC) dropped below $100,000, causing the crypto market to be on the edge. This has affected Dogecoin, causing its price to fall by 11% in 24 hours. With the market unsure, many people are watching closely to see what happens next.
A Bearish Market Weighs on Dogecoin
The recent downturn in Bitcoin, after jumping to its All-Time High recently, has sent shockwaves through the crypto market. Dogecoin is feeling the brunt of this, with the total memecoin market cap now at $90.46 billion. The coin has steadily declined, with sellers pushing the price closer to the psychological support level of $0.30.
The $0.30 support level has become an important point for Dogecoin, with its price close to this line. Recently, Dogecoin has struggled to stay above the 50% Fibonacci level at $0.35321, showing a decline in its price.
This is causing more negative sentiment, putting more pressure on the key support level. In the past 12 hours, Dogecoin has dropped 10.77%, with three bearish candles in a row. The price has also gone below the 38.20% Fibonacci level at $0.33.
The token has also crossed the technical signal called a “death cross,” suggesting that the price may keep falling. The relative strength index (RSI) on the 4-hour chart has now dropped below the oversold boundary.
This has further proved the dominance of sellers in the market. This suggests that the bearish trend is firmly in play, with the bulls struggling to gain momentum.
The Importance of the $0.30 Price Level
With the price dropping to $0.3130, Dogecoin is now testing the $0.30 support level. This move aligns with the 23.60% Fibonacci level, adding to its technical significance. This level is a critical support zone that could make or break the coin’s short-term outlook.
Since last Christmas, Dogecoin has stayed above the $0.30 level. However, if it drops below $0.30, it could lead to a bigger price drop. If it breaks the $0.30 support, Dogecoin might fall to $0.265 and then to $0.20.
If Dogecoin bounces back to the $0.30 level, it could reach $0.33 again and start a rally. Despite what the market shows, analyst Ali Martinez thinks DOGE could rise to $15. This comes as the Dogecoin Exchange Traded Fund (ETF) proposal is gaining traction.
Nevertheless, all eyes are on the digital asset to see if it can fight off the bears and maintain its footing at these crucial support levels.
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