- Dogecoin is retesting the $0.10 psychological support after a 20% market cap drop in four days.
- A bearish pennant and Elliott Wave correction signal further declines if Dogecoin falls below $0.10.
- If $0.10 holds, Dogecoin could rebound to $0.1130 or higher; otherwise, support lies at $0.097 and $0.092.
Dogecoin, the king of meme coins, is at a pivotal point. The $0.10 mark, a crucial psychological support, is being tested once again. The global crypto market is facing a flood of supply as market uncertainty grows. Will Dogecoin bounce back or continue its downtrend?
Ali Martinez, a well-known crypto analyst, highlights that Dogecoin has retested the breakout of a falling wedge. After a 20% drop in market cap over four days, DOGE is now hovering near $0.10, with an intraday gain of 1.07%. The price opened at $0.10457, and the bulls are attempting to stage a recovery.
Price action suggests a possible post-retest reversal. A morning star pattern forming in intraday charts hints at bullish momentum. But the broader market’s selling pressure is hard to ignore. If DOGE falls below the $0.10 support, the wedge breakout would be considered invalid, heightening the risk of further declines.
Dogecoin’s Bearish Pennant Adds to the Pressure
The 4-hour chart reveals a bearish pennant formation, with a surge in selling pressure. The Elliott Wave pattern suggests a five-wave correction that aligns with this bearish signal. Should DOGE break below $0.10, the next support levels lie at $0.097 and $0.092.
However, there is a glimmer of hope. The MACD indicator is showing signs of a bullish crossover, though the downtrend in the 50-100-200 EMA could act as dynamic resistance, limiting the potential for any significant recovery.
DOGE’s future hangs in the balance. With high uncertainty, the $0.10 psychological support may determine the next major move in the market.
