Dogecoin crashes below $0.24 and marks a triangle breakdown. Will the supply surge plunge DOGE prices below $0.20?
Amid the sudden surge of bearish sentiment in the crypto market, Dogecoin marks a breakdown rally. Crashing under the $0.24 crucial support level, the DOGE price trend brings a bearish conclusion to the descending triangle pattern.
With the falling prices, Dogecoin’s network witnesses a sharp decline in activity. Is Dogecoin about to crash under the $0.20 psychological support?
Dogecoin Confirms Triangle Breakdown
In the 4-hour price chart, Dogecoin revealed a strong resistance trend line, keeping the bearish trend intact. With multiple overhead resistances, Dogecoin finally broke under the $0.2341 support level.
With a new 7-day low at $0.22644, Dogecoin has marked a descending triangle pattern breakdown. Amid the increased selling pressure, the MACD and signal lines have witnessed a sharp downtick with a surge of negative histograms.
Hence, the momentum indicator suggests an increase in bearish momentum. As per the pivot levels, the meme coin price is hanging at the S1 support pivot level at $0.22836, with a 4-hour candle close underneath the S1 support level.
The downfall is expected to potentially continue to the S3 support level at $0.19361. This will mark a crash and bring Dogecoin back under the $0.20 psychological mark after a two-month bullish momentum.
Network Activity Plummets: A Sign of Weakening Demand?
Supporting the downside scenario, crypto analyst Ali Martinez points out that Dogecoin’s network activity has dropped to its lowest level in months, reaching figures not seen since October 2024.
There were only 66 whale transactions, with fewer than 60,000 active addresses per day.
As network activity slows, the market price is expected to fall due to the declining demand on the network.
Bullish Hopes: Could DOGE Stage Another Explosive Rally?
Despite the technical signals indicating a selling opportunity, some traders remain optimistic. According to Trader Tardigrade, an analyst on X, Dogecoin is completing its fourth falling wedge pattern.
The first breakout resulted in an 88% surge in the last quarter of 2023. The second wedge breakout in early November saw a 208% price jump. Finally, the third wedge breakout in the last quarter of 2024 led to a 445% surge, propelling Dogecoin close to $0.50.
Currently, Dogecoin is at the crucial support level of the fourth falling wedge pattern. If this pattern plays out as expected, a breakout could trigger a significant rally, potentially pushing Dogecoin past the $0.50 mark.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
