TLDR
- With Dogecoin valued at $0.1649, it's evident that there's been a daily price drop of about 3.6%.
- The RSI metrics demonstrate that Dogecoin is heavily oversold across various timeframes, indicating potential opportunities.
- Since 2015, Dogecoin has sustained its long-term ascending channel, illustrating robustness despite recent pressures.
- Major investors still seem to be accumulating Dogecoin, notwithstanding the current price decline.
- Elon Musk dismisses any government interest in utilizing Dogecoin, despite the amusing agency acronym, D.O.G.E.
After losing its 2024 gains, Dogecoin continues its March downward trajectory, breaching significant support levels, and is now priced at $0.1649 with a 3.6% drop for the day.
Technical indicators display worrying signs; RSI plunges into deep oversold areas, particularly the 1-hour chart shows RSI between 25-27, and the 4-hour shows it below 10, which often hints at a potential rebound.
Currently, the daily RSI hovers around 32-33, nearly reaching oversold regions, pointing towards strong selling pressure while also hinting at a rebound opportunity.
A TradingView analyst predicts a 30-40% chance of DOGE sliding to the $0.158-$0.159 level but believes there's a stronger 60-70% chance of a rebound towards the $0.172-$0.175 range.
While short-term predictions might seem negative, the long-term technical signals give hope, as Dogecoin holds above the critical long-term ascending channel since 2015.
Market Analysis
Dogecoin's recent pullback brought it near $0.17, sitting just above the pivotal 0.786 Fibonacci level, hinting at a potential reversal towards $0.56 if historical trends continue.
Positive news emerges from on-chain data where the Accumulation/Distribution Line shows 20.28 billion DOGE, indicating long-term holders are persistently accumulating.
Wallet data from Santiment Data shows major holders are not in a rush to sell. Those with holdings between 10 million to 1 billion DOGE have been consistently accumulating throughout March.
Despite challenges faced by Dogecoin in the short term, it's trading below the 50 and 200-period moving averages in the 12-hour chart, with the 50 SMA resisting at $0.176. A rise above $0.18 could hint at a reversal.
Elon Musk recently addressed the speculative discourse around government use of Dogecoin. Dogecoin. With the light-hearted naming of the Department of Government Efficiency (D.O.G.E.), Musk confirmed there are no current U.S. government plans to adopt Dogecoin.
Musk might conclude his involvement with D.O.G.E. by May, aiming to fulfill the agency's objective within 130 days, potentially reducing the deficit by a trillion dollars, as mentioned to Fox News.
Crypto analysts remain divided on DOGE’s Looking ahead, some people highlight Dogecoin's history of strong rebounds after significant corrections, akin to its patterns from the 2017 and 2024 rises.
#Dogecoin $DOGE Dogecoin remains resilient above the lower end of its trading channel, with prospective demand possibly sparking rallies toward higher ranges.
Join me in this trade by signing up to @coinexcom using my referral link https://t.co/73n8mWavUX pic.twitter.com/G92NGsNqZL
— Ali (@ali_charts) March 30, 2025
Certain factors like the potential approval of Dogecoin ETFs by the SEC could act as catalysts. Technically, a RSI breakthrough and a closing of a prolonged wedge could pave the way for short-term recovery.
For immediate price movement, experts are keen on Dogecoin's behavior at $0.165. A buyer surge might push it to $0.172 swiftly, yet ongoing sell pressure could see a continued decline.
Dogecoin is at a crossroads where its decade-long channel, coupled with discreet accumulation by large wallets, signal a need for breaking $0.18 to confirm bullish trends and eyeing targets between $0.27 and $0.56.
