Dogecoin Faces Critical Support Level at $0.16700 to Avoid Further Decline
Dogecoin's price is at a critical level, closing at $0.17551 above key support levels: the former down-trend resistance and the 78.6% Fibonacci retracement from its recent high of $0.48440.
Current Situation
- Dogecoin has been in a six-month descending channel since peaking at $0.48440 on December 8.
- The median of this channel was support around $0.1800 until an 11% drop occurred, influenced by Bitcoin’s decline.
- Failure to reclaim $0.1800 could indicate ongoing bearish trends.
Potential Risks
- If Dogecoin falls below $0.16700, historical support between $0.14500 and $0.13500 becomes crucial for bulls.
- A breach of this area may lead to a broader bearish phase, potentially reaching the January low of $0.12990.
- The fourteen-day Relative Strength Index is at 34.70, indicating negative momentum.
Price Targets
- Bulls need a daily close above $0.1800 to regain momentum.
- Resistance levels include the 20-day EMA at $0.20120 and others up to the 200-day EMA at $0.21550.
- A weekly close above $0.22 would signal a reversal of the downtrend.
- If support at $0.16700 fails, targets shift towards $0.14500–$0.13500 and potentially lower to $0.12990 and $0.08.