As the crypto market declines rapidly, Dogecoin is warning of a potential fall to $0.30. Will the $0.33 level provide a bounce-back opportunity?
Following a dip in the crypto market just hours after President Trump’s inauguration, meme coins are experiencing a sharp decline. Dogecoin has dropped 6.47% in the past 24 hours, with its market cap now at $50.39 billion.
As broader market liquidations surge to nearly $750 million, selling pressure has resulted in $500 million worth of liquidations from long positions. Amid this intense bearish phase, the key question remains: will Dogecoin hold above critical support levels?
Dogecoin Price Analysis
On the 4-hour chart, Dogecoin’s price action reveals an intense correction phase. After hitting a 7-day high of $0.43434, the meme coin has dropped by 21.57%. Currently, Dogecoin is trading at a market price of $0.34066.
A streak of five consecutive bearish candles has pushed Dogecoin below the 200 EMA line. Additionally, it has breached the 50% Fibonacci level at $0.35321. Due to heightened selling pressure, the 20 and 50 EMA lines are on the verge of a bearish crossover.
The 4-hour RSI line is nearing the oversold zone but reveals a minor bullish divergence, hinting at a potential reversal. Furthermore, lower price rejections in the consecutive bearish candles indicate a bullish struggle to absorb the supply pressure.
The upcoming support zone at the 38.20% Fibonacci level ($0.3303) will serve as a crucial crossroad for Dogecoin’s price trajectory.
Whale Transactions Surge
As Dogecoin’s price witnesses a massive drop, crypto analyst Ali Martinez highlights growth in the Dogecoin network. In a recent X post (formerly Twitter), the analyst pointed out a surge in whale transactions.
Based on data from Santiment, the number of transactions exceeding $1 million on the Dogecoin network has increased significantly. Over the past 24 hours, these transactions have peaked at 588, signaling network growth.
DOGE Price Targets
If the broader market stabilizes, the reduction in selling pressure and increased whale activity could fuel the Dogecoin reversal. Hence, if buyers regain momentum at the 38.20% Fibonacci level, the price may climb back to the 61.80% Fibonacci level near $0.37772.
Conversely, if the bearish trend continues, the next key level to test will be the $0.30 psychological support, close to the 23.60% Fibonacci level.
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