Dogecoin drops 4% to $0.2222 as Bitcoin retraces. Will DOGE revisit the $0.20 level amid a Double Top breakdown?
As Bitcoin pulls back toward the $102,000 mark, meme coins are experiencing a sharp correction. Dogecoin has dropped nearly 4% today.
Currently trading at $0.2222, Dogecoin marks its third consecutive red day following a 35% rally last week. Will this short-term pullback push DOGE to retest the $0.20 psychological level?
Dogecoin Price Analysis Signals $0.20 Retest in Short-term
After a significant surge to the $0.25 psychological resistance, Dogecoin entered a sideways phase. However, the loss of momentum during consolidation has led to the formation of a bearish Double Top pattern.
The neckline of the pattern, located at $0.2225, previously acted as a support and triggered a bounce on May 11. However, with the recent intraday decline, DOGE has now confirmed a breakdown below the neckline with a decisive four-hour close at $0.2185.
A minor recovery of 1.56% appears to be retesting the breakdown point. Based on the Double Top pattern, a further decline could test the $0.20 psychological support level. This also raises the risk of a breakdown below the 50-EMA, which currently sits at $0.2091.
Additionally, the four-hour RSI has dropped from the overbought region to the midline during the consolidation and breakdown phase. This indicates fading momentum, increasing the likelihood of a deeper correction.
If buyers fail to hold the $0.20 support, DOGE may decline further to test the 200-EMA near the $0.18 psychological level. On the other hand, a decisive four-hour close above $0.2225 would invalidate the bearish pattern and could propel DOGE toward the $0.2506 level, increasing the likelihood of a breakout.
Downfall in DOGE Fuels Long Liquidations
Amid the broader market retracement, Coinglass data shows long liquidations have exceeded $500 million in the past 24 hours. Dogecoin alone has seen a spike in long liquidations, totaling $3.38 million in the last four hours and $21.72 million over the past 24 hours.
This increase in long liquidations signals short-term bearish dominance in the derivatives market.
Analysts Predict Extended Rally for Dogecoin
In a recent tweet, crypto analyst Ali Martinez highlighted Dogecoin’s bullish momentum as it approaches a critical resistance zone, ranging from $0.2490 to $0.27. This area previously acted as resistance during the February correction phase.
A breakout above this range could drive DOGE toward previous highs near $0.48. However, failure to break out may result in a pullback toward $0.20 or even $0.1550.
Despite short-term volatility, crypto analyst Jonathan Carter remains optimistic on Dogecoin. He points to a descending channel breakout on the 3-day chart, which has been forming since November 2024.
As this breakout rally gains traction, Carter projects a price target of $0.4450, with intermediate resistances at $0.287 and $0.34.
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.
