Dogecoin Drops 5% Amid Bearish Market Sentiment

Dogecoin (DOGE) has recently displayed a falling wedge pattern following a significant correction in the cryptocurrency market. This pattern suggests a potential downward breakout, which could lead to further declines in the short term. The cryptocurrency market has experienced major liquidation events, resulting in over $450 million worth of assets being sold in the previous day. Despite these challenges, DOGE has maintained a bearish direction, hovering below the $0.17 support level. The total number of transactions processed for DOGE stands at 41,132, indicating continued market activity.

According to a recent report by crypto analyst Ali, Dogecoin has completed 41,132 transactions in the last 24 hours. The average transaction cost reached 0.534 DOGE, amounting to $3,900 based on current market prices. The data shows that Dogecoin’s transaction fees have witnessed dramatic shifts in value over the previous week as market demand for network operations has changed considerably. This network activity information provides a vital understanding that influences how investors perceive Dogecoin in the market.

The Dogecoin price is showing signs of a potential downward breakout, forming a Falling Wedge pattern on the 4-hour chart. This technical pattern suggests that the price could continue its descent, reaching lower price levels in the short term. Currently, DOGE is facing resistance near the $0.18 level, with support located at $0.15. The price movement within the Falling Wedge indicates that there may be a gradual decline before a potential reversal, but this remains uncertain without further confirmation.

At the time of writing, the DOGE price is trading at $0.1709, with a 5% decrease over the past 24 hours. This follows the decrease in other crypto markets, with BTC hovering around $83k and ETH trading below $1,9 support levels. The Relative Strength Index (RSI) is currently hovering around 33, nearing the oversold region, indicating a bearish market sentiment. The Moving Average Convergence Divergence (MACD) indicates signs of a weak bullish crossover, which suggests that bearish momentum remains active. A possible reversal may begin when the MACD line crosses above the signal line.

The immediate resistance stands at $0.18, while the support level is at $0.15. If the Dogecoin price breaks below the support, further decline could be expected toward the $0.14 range. If bears mount with strong sell, it could lead to a DOGE price decrease to $0.1 in the near term. On the other hand, a successful breakout above the resistance could lead to a return to the $0.2 area.