What’s Next for Dogecoin Price After Failing to Hold 50% Fibonacci Support?
Dogecoin Price: Amid the pre-halving correction in the crypto market, the Bitcoin price plunged to a low of $59672 on Wednesday registering a loss of 4.5%. This steady supply pressure prolongs the correction trend for the majority of major altcoins including Dogecoin. With an intraday loss of 5%, the largest meme cryptocurrency by market cap loses the 50% retracement support, indicating the potential for prolonged downfall.
Will Dogecoin Price Lose $0.14 Amid Market Correction?
Dogecoin entered the current correction trend in late March, as the price reverted from the high of $0.288. The bearish downturn plunged the coin value 35% within three weeks to the current trade at $0.14.
The formation of new lower highs and lows signals a change in market sentiment from “buying on dip” to “selling on rallies”. The downsloping trendline in the daily chart acts as dynamic resistance and leads the current projecting of a downtrend. This falling price has recently breached the 50% Fibonacci retracement tool— a key support for buyers to maintain their dominance over the asset.
By the press time, Dogecoin trades at $0.148, and with a market cap of $21.4 Billion, it maintains its position as the 8th largest cryptocurrency.
If the breakdown sustains, the DOGE price may plunge 16.4% to hit the March 2024 low of $0.124. With less than 2 days for Bitcoin halving, the aforementioned levels act as a crucial reversal point.
Historical trends suggest that Bitcoin typically takes a while to embark on its rally post-halving, and thus altcoins may require even more time before showing bullish momentum. Thus, the potential trend for Dogecoin price for the near term seems sideways.
Technical Indicator
- Directional Movement Index: A bearish crossover between the DI+(blue) and DI-(orange) indicates the sellers are leading the short-term trend of SHIB price.
- Exponential Moving Average: The memecoin price trading above daily EMAs 100 and 200 highlights the broader trend remains bullish.
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