Dogecoin (DOGE) has struggled to maintain its recent price levels, with the token declining 7.15% last week.
As of Monday, DOGE was trading at around $0.25, having dropped below the key 50% Fibonacci retracement level of $0.27, which was drawn from its August 14 low of $0.05 to its December 2 high of $0.48.
Source: CoinMarketCap
With technical indicators signaling increased bearish momentum, the meme coin faces the risk of further downside pressure.
If the trend continues, DOGE could extend its correction toward its next major support at $0.18.
Market sentiment surrounding DOGE remains cautious, as traders closely watch its technical patterns.
The Relative Strength Index (RSI) sits below its neutral 50 level, indicating that sellers are in control.
Meanwhile, the Moving Average Convergence Divergence (MACD) has confirmed a bearish crossover, reinforcing expectations of a continued downward move.
Given these indicators, analysts are assessing whether DOGE can stabilize or if the cryptocurrency is headed for further decline.
RSI and MACD confirm a downtrend
Dogecoin’s price structure continues to weaken as technical indicators align with a bearish outlook.
The RSI on the weekly chart stands at 48, falling below its neutral threshold of 50, which suggests that selling pressure is increasing.
Historically, an RSI below 50 indicates that momentum favors the bears, raising the possibility of extended losses.
The MACD also presents a bearish signal, with the MACD line crossing below the signal line on the weekly chart.
This crossover typically indicates that downward momentum is gaining strength, often leading to further price declines.
If the current trajectory persists, DOGE could test lower support levels in the coming weeks.
Key support and resistance levels
Dogecoin’s immediate resistance remains at $0.27, the 50% Fibonacci retracement level that previously acted as support.
A break above this level could ease downward pressure, but with current momentum indicators pointing to further declines, the next critical level to watch is $0.18.
This weekly support zone has held firm in past corrections, making it a key level for traders looking for potential rebounds.
If DOGE falls below $0.18, it could trigger additional selling pressure, pushing prices further down.
However, a bounce from this support level could offer some relief, particularly if broader market conditions improve.
Traders will be closely monitoring whether DOGE can stabilise above its critical support, or if bearish momentum will drive it lower.
Market trends impact DOGE
Dogecoin’s price action is not occurring in isolation, as the broader cryptocurrency market also plays a role in shaping sentiment.
Bitcoin and Ethereum have shown signs of volatility, and any major moves in these assets could impact DOGE’s trajectory.
Investor appetite for meme coins has cooled compared to previous market cycles, with DOGE struggling to attract the same level of speculative interest it once did.
While DOGE remains a popular asset among retail traders, its price performance in the near term will likely depend on whether bearish momentum continues or if a shift in market sentiment can support a recovery.
Until key technical indicators show signs of reversal, traders may remain cautious about DOGE’s potential to regain lost ground.
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