TLDR
- A particular Double Top configuration has appeared in Dogecoin's technical analysis, and with the coin's value dipping by over 32% in the last month to $0.25, concerns are growing.
- In the view of analyst ‘MelikaTrader94,’ DOGE might slip amid turbulence, reaching support points at $0.22 (first support) and potentially further down to the $0.176-$0.18 range (second support).
- The current alignment of the Relative Strength Indicator highlights a bearish divergence, pointing towards waning purchase strength.
- Emerging from this picture, a negative trend line has resistance positioned at $0.2560, while substantial support can be seen at $0.2420.
- Despite the prevalent signals, analyst Ali Martinez mentions a buy signal from the TD Sequential indicator on the 4-hour chart, indicating a potential for recovery.
The crypto community eagerly watches Dogecoin's (DOGE) trajectory as this popular meme coin shapes a technical pattern hinting at future shifts. Trading at $0.25, DOGE reflects a 32% dip over the preceding month, casting doubts over its short-term path.
Recent investigations into the technical landscape show Dogecoin’s trajectory forming a Double Top pattern, intriguing traders and market analysts. Characterized by two consecutive peaks, this formation often presages potential downtrends.
According to TradingView analyst ‘MelikaTrader94’, they have pinpointed pivotal support thresholds that might surface if bearish developments ensue. Initial support (S1) rests at $0.22, while a secondary, more significant support range (S2) lies between $0.176 to $0.18.
To add more context to this analysis, the Relative Strength Indicator (RSI) is showing a bearish divergence. Such divergence typically suggests weakening market enthusiasm, as prices rise while RSI scores fall.
#Dogecoin $DOGE The TD Sequential indicator is hinting at a rebound, with a buy signal appearing on the 4-hour chart! pic.twitter.com/HiYJ7iVCP8
— Ali (@ali_charts) February 17, 2025
Over the last day, DOGE saw a decrease of over 4%, extending its weekly decline to 5.5%. This steady downward trend has forced the asset below key technical levels, including the 100-hour simple moving average.
A downward sloping trend line has been identified, with resistance set at $0.2560, posing another challenge for any recovery efforts. Breaking through to $0.2600 is crucial for the bulls to generate upward momentum.
Yet, opposing indicators offer more optimistic prospects. Crypto analyst Ali Martinez highlighted the TD Sequential's buy signal on the 4-hour chart as a sign of potential recovery.
Market Analysis
The hourly chart shows that Dogecoin DOGE has already tried to pull back up from a prior low of $0.2420, successfully surpassing the 23.6% Fibonacci retracement level related to the downward phase from the $0.2830 peak.
Pushing the price above $0.2620, aligning with the 50% Fibonacci retracement level, could unlock the way to the $0.2670 resistance threshold. Success beyond this point could inspire further investments, ultimately targeting the $0.300 level.
On the flip side, immediate support can be found at $0.2480, with the recent low at $0.2420 right behind it. Dropping below these critical points might hasten the decline toward the major support zone of $0.2350.
The MACD's hourly chart reveals dwindling bearish momentum, albeit remaining in the negative sphere. This suggests a possible decline in selling pressure.
During this period of uncertainty over price, trading volumes have been fairly stable, insinuating that main market players are adopting a wait-and-see approach amidst speculations on the Double Top pattern.
Professional opinions suggest that confirming the Double Top pattern involves a decisive break below its neckline, which might then lead to further declines to lower support levels.
DOGE's current activity is part of broader market dynamics, mirroring trends in other key cryptocurrencies. DOGE The unique technical situation unfolding for DOGE is closely analyzed by traders.
The latest trading numbers display DOGE consolidating around the $0.25 mark, indicating that market participants are keenly deliberating various technical signals before executing their decisions.
