Here’s How Dogecoin Price May Navigate Losing 50% Retracement Level

Dogecoin Price: The cryptocurrency market continued its recent correction on March 19th, with Bitcoin falling below the $65K level, highlighting a broader downturn. Among the hardest hit were meme cryptocurrencies, which experienced significant sell-offs, leading to double-digit losses for well-known tokens like DOGE, PEPE, WIF, FLOKI, and BONK. 

Specifically, the Dogecoin price faced a 10.55% intraday loss, teasing a breakdown below the 50% Fibonacci retracement level to prolong the correction trend.

Also Read: Top 3 Crypto’s Creating Millionaires in 2024: Dogecoin, Shiba Inu and 1000x A. I Token Option2Trade

Will the DOGE Price Hit $0.12 Support?

Dogecoin (DOGE), the largest memecoin by market cap, entered a new correction trend in February’s third week as the price reverted from $0.193. The overhead supply at $0.2 coupled with the broader market correction tumbled, this memecoin 31% within a week to currently trade at $0.132.

Dogecoin saw its market capitalization decrease to $18.9 billion following a 10% loss within the day. Nonetheless, it remains the 10th largest cryptocurrency, as ranked by CoinMarketCap.

Amid this downfall, the DOGE price breached the 50% Fibonacci retracement level at $0.14, positioning the asset for further downfall. Losing this support is a sign of weakening bearish conviction and increasing dominance of sellers.

The post-breakdown fall may bolster bears to chase potential support levels at $0.123, followed by $0.106.

Also Read: Dogecoin Price Prediction: Here’s Why Traders Want To Buy DOGE At $0.13

Will the Dogecoin Price Rebound?

If the coin price managed to rebound from the aforementioned support, the buyers would get an opportunity to counter-attack and reclaim the lost ground. However, the potential reversal must breach a downsloping resistance trendline(marked in black) to gain a better confirmation of recovery.

The post-breakout rally may bolster buyers to rechallenge the last high of $0.206.

Technical Indicator

• Exponential Moving Average: The 50-day EMA slope enhances the support strength of the $0.123 demand zone.
• DMI: The DI+(blue) and DI-(orange) lines nearing a bearish crossover could intensify the bearish momentum in the market. Moreover, the falling ADX slope reflects the last recovery rally that pushed the DOGE price to the overbought region.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.