Dogecoin Price Nears Breakdown Zone but Bulls Aren’t Backing Down
Dogecoin (DOGE) has faced renewed downward pressure in recent sessions, slipping below the short-term averages and testing the lower end of its trading range.
Despite a temporary attempt to hold above $0.18, sellers have maintained control, signaling a cautious phase for the meme coin as momentum indicators begin to weaken.
Momentum Cooling as Bulls Step Back
The 9-day and 20-day exponential moving averages are both trending downward, reflecting a short-term bearish bias. This pattern suggests that buyers have struggled to sustain upward momentum following earlier gains, with sellers dominating the near-term outlook.
Daily chart for DOGE/USDT (Source: TradingView)
The MACD line remains slightly below its signal line, signaling persistent negative momentum but with limited strength—indicating that while bearish forces are present, they are not yet accelerating sharply.
Meanwhile, the Relative Strength Index (RSI) has slipped toward the lower 30s, reflecting growing selling pressure and suggesting that DOGE is approaching oversold conditions. This could open the door for a short-term rebound if buyers step in near established support zones.
Key Levels to Watch
DOGE’s immediate resistance sits around $0.1815 to $0.1825, where multiple ask walls have formed. Clearing these levels would likely encourage short-term momentum buyers to re-enter the market, potentially targeting the next resistance near $0.1949. However, persistent sell walls at $0.1804 and $0.1814 show that bulls need significant volume to break through.
On the downside, strong bid walls have emerged around $0.1730, $0.1725, and $0.1721, absorbing over 15 million DOGE in total. These layers represent a crucial demand zone that could slow further declines. If these walls were to break, however, price action could quickly slide toward the $0.1710–$0.1670 region, representing a potential 3–4% drop.
DOGE Trading Strategy: Tight Range with Opportunities
Given the narrowing range and neutral-to-bearish technical structure, traders may look for confirmation signals before committing to a position. A sustained push above $0.1825 could serve as a bullish trigger, targeting a short-term breakout toward $0.1949. Conversely, if DOGE breaks below the $0.1720 bid wall cluster, short traders could find an opportunity to target lower supports near $0.1700 or $0.1670.
Momentum remains weak, suggesting that patient traders may benefit from waiting for volume spikes or a clear divergence in momentum indicators before entering new positions.
Outlook
While Dogecoin remains under pressure, the presence of dense bid walls shows that accumulation interest persists at lower levels. Unless these supports are breached, the market could stabilize and attempt a mild recovery. However, until the price reclaims and holds above its short-term averages, sentiment will likely remain cautious.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
