DOGE Drops Below Key Support, Signaling Possible End to Five-Month Uptrend
Dogecoin (DOGE), the largest memecoin by market capitalization, broke below its short-term uptrend line on Monday, raising concerns that its recovery from December’s lows may be over and that the five-month rally could be coming to an end.
Since then, DOGE’s price has fallen below the 38.2% Fibonacci retracement level of the rally that began in August and peaked at around 48 cents in December before retracing. A well-known principle in technical analysis holds that a market must stay above this level for the trend to remain intact. A failure to do so is typically seen as a sign of trend reversal.
The Moving Average Convergence Divergence (MACD) histogram is showing deeper negative bars below the zero line, a sign of growing bearish momentum. In addition, both the five-day and 10-day simple moving averages are moving downward, reinforcing a bearish outlook.
Support is expected around 26 cents, the low reached on December 20, with further support at 23.4 cents, marking the 61.8% retracement level of the August-December rally. To counter the bearish scenario, DOGE would need to reclaim the uptrend line from the December lows.
