Dogecoin Faces Moment Of Truth: Will It Hold The Line Or Freefall? 🐶
Dogecoin is once again in the spotlight as it tests a crucial multi-year trend line. The current market position suggests a turning point that could either lead to a price collapse or a significant rebound. With the meme coin already down about 66% from its 2021 peak, the pressure on bull traders is intense.
On the weekly chart, Dogecoin struggles to stay above the 0.786 Fibonacci retracement level at $0.167, which has converged with the downward-slanting trend line. The possibility of a renewed sell-off looms large if DOGE falls below its current crucial threshold. Meanwhile, on the daily chart, bears have consistently thwarted attempts to recapture the downtrend channel.
Bears have continuously rejected Dogecoin's efforts to get back above key levels, coinciding with reduced buying volume. This lack of momentum and resistance at the weekly and daily EMA lines have created a tough environment for DOGE. Should the price drop further, it could test the $0.14 support again, with the possibility of further declines to $0.12.
The battle now focuses on the interplay between Dogecoin's price and its long-abiding trend line as the market speculates whether it can sustain its structural support. A break below $0.14 raises the stakes for a severe dip in value.
Source: www.newsbtc.com ↗
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