Dogecoin (DOGE) Price Drops 22% as Key Chart Support Level Teeters on the Edge

Key Takeaways

• Dogecoin has dropped 22% in 30 days and is close to a breakdown from its multi-month consolidation.
• Low volatility and declining momentum suggest DOGE is unlikely to retest resistance unless bulls return.
• However, a break above triangle resistance could trigger a rally toward $0.24, near the 0.382 Fib level.

Dogecoin’s (DOGE) 22% drop within the past 30 days has pulled it down to test the lower edge of a symmetrical triangle. At press time, Dogecoin’s price trades at $0.17.

However, looking at several indicators warns that memecoin risks brushing below the channel’s lower boundary. If validated, DOGE could fall into bear market territory.

But will this be the case or not? Let’s find out.

Dogecoin Risks Another Drop

On the daily chart, DOGE’s price has traded in a symmetrical triangle since Jan. 23. This triangle consists of two converging trendlines of equal slopes.

The upper trendline represents resistance, while the lower one indicates support. Dogecoin’s price will drop below the support line in the image below.

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Amid this technical setup, CCN examined the Moving Average Convergence Divergence (MACD) to measure the momentum around the memecoin. As seen below, the MACD has slipped into negative territory.

The decline in the MACD reading indicates growing bearish momentum. Reinforcing this outlook is the position of the Exponential Moving Averages (EMAs).

Specifically, the 26 EMA (orange) has crossed above the 12 EMA (blue), confirming a bearish crossover and could accelerate DOGE’s downward trend.

If this setup persists, the coin is unlikely to retest the upper trendline of the symmetrical triangle amid low volatility.

Bearish Pressure Intensifies

We examined the Market Value to Realized Value (MVRV) Long/Short Difference from an on-chain perspective. This metric compares the unrealized profits of long-term holders to those of short-term holders.

A positive reading suggests long-term holders are profitable, which would have been a bullish sign for Dogecoin’s price action.

However, the current reading is -24.10%, indicating short-term holders have more unrealized gains.

If this trend persists, it could limit DOGE’s ability to break above key resistance levels, particularly the psychological zones at $0.20 and $0.25.

DOGE Price Prediction: 25% Decline Possible

Looking at the daily chart, the Awesome Oscillator (AO) remains in negative territory, reinforcing the bearish momentum mentioned earlier.

Additionally, the red segment of the Supertrend indicator sits above Dogecoin’s price — a signal of overhead resistance. Typically, when the green line is below the price, it signals support, but the opposite scenario indicates rising sell pressure.

If this bearish setup holds, DOGE could decline toward $0.13, marking a 25% drop from its current value. In a more extreme case, the price may fall as low as $0.10.

On the contrary, if buying pressure returns and DOGE breaks above the triangle’s upper trendline, the price could rally to $0.24, aligning with the 0.382 Fibonacci retracement level.