Dogecoin Faces Heavy Selling Pressure but Technical Setup Hints at Possible $1 Surge
The meme-coin Dogecoin is experiencing stress, having fallen by 30% from its September highs. Despite selling pressure and low institutional interest, some technical patterns suggest a potential rebound to $1.
From Crash to Compression: Dogecoin Under Pressure
- Price fell from $0.3066 to $0.198, a 30% decline.
- DOGE broke below a consolidating upward wedge, with a possible "death cross" as the 50-day EMA nears crossing below the 200-day EMA.
- Support at $0.1515 is critical; breaking below $0.0570 could lead to extreme risk scenarios.
- The newly launched DOGE ETF has only $30.7 million in assets, indicating weak institutional demand.
Technical Setup: Danger Ahead, But Also Hope
- Indicators like MACD and MFI show weakening buying strength and increased seller dominance, suggesting near-term bearishness.
- DOGE trades near the lower boundary of a long-term ascending channel since 2021, with Stochastic RSI at historically low levels.
- If DOGE holds support around $0.19 and breaks resistance near $0.30, it could head toward $0.50-$1.
- A key resistance point is near $0.21, known as a "supply wall" due to previous heavy accumulation.
What Comes Next? Cautiously Optimistic Outlook
- In the short term, DOGE may see more downside or sideways movement unless new buyer momentum appears.
- For a positive shift, DOGE needs to hold support, confirm a breakout, and see a rise in volume.
- Traders should watch for a higher-timeframe close above $0.30 and intra-day volume spikes for confirmation.