Dogecoin Drops 20% to $0.1300 Amid Broader Crypto Market Downturn

Dogecoin (DOGE) has experienced a significant decline, with its price dropping over 20% in the last 24 hours to $0.1300. This sharp decrease is part of a broader downturn in the cryptocurrency market. Despite the current bearish sentiment, analyst Kevin (@Kev_Capital_TA) suggests that DOGE is holding above a critical support level that could provide long-term upside if macroeconomic conditions stabilize. Kevin identifies the $0.1300 level as the last line of defense for the bulls. If DOGE can maintain this level and avoid a weekly close below it, there is potential for a rebound once key momentum indicators, such as the 3-day MACD and 2-week Stochastic RSI, start to reset.

Kevin's analysis is based on a multi-timeframe technical level around $0.1300, which he refers to as "the last line of bull market support" for Dogecoin. He also monitors macro liquidity, noting that DOGE is retesting the upper end of its previous bear market range, which aligns with a significant Fibonacci retracement level from the last cycle. If the Bitcoin price remains above $70,000, global liquidity patterns may begin to ease, supporting a bullish outlook for DOGE. However, Kevin warns that if DOGE closes "durably below" the $0.1300 level, the bullish argument will be invalidated. The current situation is precarious, with sentiment being poor but structural support intact. Traders are closely watching this bounce, as it could determine whether the next move is a relief rally or a deeper correction. The broader cryptocurrency news cycle is also expected to influence short-term price action.

On the five-minute chart, Dogecoin showed signs of recovery after finding support around $0.1300, bouncing to $0.1364. However, the price has been in a prolonged downward trend, failing to break above recent resistance levels near $0.1450 and $0.1500. Following several entries into an oversold state, as indicated by the RSI dropping below 30, DOGE rebounded, and the RSI is now at 55.23, suggesting some short-term strength. A bullish crossover has recently developed, with the MACD line climbing above the signal line and the histogram turning green. This technical setup supports the bounce, but DOGE needs to hold above $0.1350 to avoid a fake-out. If this level is not sustained, Dogecoin may drop back toward support, with important resistance between $0.1400 and $0.1450. While momentum is slightly positive, the overall trend remains weak, and sustained buying is needed to confirm the reversal, especially in a generally bearish crypto news environment.

As of now, Dogecoin is showing early signs of recovery, with the RSI back above 50 and the MACD turning bullish. Although the movement needs confirmation, the short-term direction is stabilizing. Holding above $0.1350 is crucial to prevent another breakdown. A clean push above $0.1400–$0.1450 could create space for a more general recovery. However, traders should closely monitor volume and liquidity conditions before preparing for an upside move. The behavior of the Bitcoin price will continue to influence altcoins like DOGE, and traders should keep a close eye on its movements.