The DOGE currency has clearly broken one of the most important support levels, which has brought back an atmosphere of concern to the market and opened the door to additional downside possibilities. As the general decline in the cryptocurrency market continues, the price has dropped by about 4.5% to settle near 0.089, while trading volume has significantly increased, surpassing 845 million, reflecting intense activity despite selling pressures.
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📉 Are we facing a new downward wave?
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On the daily frame, DOGE lost the level of 0.095 which had formed a strong support base since February 2024. This break is considered a sensitive technical signal, as the failure of the price to reclaim this level may pave the way for a decline that could reach 35% in the upcoming period.
Currently, the level of 0.088 stands out as near support that the price may try to hold onto. If it fails to hold, the decline may extend towards the next area near 0.057, which is considered a deeper key support.
🔎 The Average Directional Index (ADX) recorded a high reading above 50, indicating that the current trend is strong, but trend strength does not necessarily mean it is bullish… rather it means that the movement – whether up or down – is gaining clear momentum.
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📊 Is this the potential bottom?
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Despite current pressures, some analysts see the current levels as a significant accumulation area in the long term. The monthly chart shows that DOGE is still moving within a prolonged upward trend, with repeated tests of a historical trend line from which strong upward waves had previously launched in past years.
✦ The historical price of the coin shows that every deep test of long-term support was followed by a noticeable rebound, but the recurrence of the scenario is not a guarantee of it happening again.
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⚖️ Movements of leveraged traders
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Derivatives data reveals that short positions currently outweigh long positions, reflecting a clear inclination towards the negative scenario.
The most monitored levels currently:
▪️ 0.088 is a key near support
▪️ 0.094 is immediate resistance
A dense liquidity concentration around these areas means that any strong breakout of either may lead to sharp and rapid movement due to the liquidation of leveraged positions.
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📝 Summary
Breaking the level of 0.095 changed the short-term technical landscape for DOGE, making the level of 0.088 a crucial pivot point. Holding above it may give the coin a chance to rebalance, while breaking it could open the door to wider declines.
On the other hand, the long-term trend remains a topic of discussion, between those who see the current levels as an opportunity and those who are awaiting clear reversal confirmations before making a decision.
⚠️ Markets do not recognize emotions… but rather risk management and discipline.
