TLDR
- With Dogecoin priced at $0.23, it reflects a decline of 8.55% over the week, indicating persistent bearish trends.
- Regaining the $0.30 resistance mark is essential for a potential price rally toward $0.48.
- Kevin, a technical analyst, identifies that Dogecoin's past patterns of 53-65% pullbacks have historically paved the way for fresh highs.
- The long-to-short ratio stands at 0.87, revealing that more traders expect the price to drop further rather than rise.
- The $0.20 support is likely to be the next goal if the downward tendency persists.
As of Monday, February 24, 2025, Dogecoin's price continues its descent, standing at $0.23. Its 8.55% decline over the past week has attracted the attention of traders scrutinizing key support points.
Recent market insights highlight a significant shift in trader outlook with Coinglass noting a DOGE long-to-short ratio at 0.87, suggesting a predominant expectation of price declines.
Technical analyst Kevin, in his latest webcast, discussed how Dogecoin has a history of significant downturns leading to new peaks. He observed previous bull market adjustments ranging from 53% to 57%, with the latest 58% adjustment fitting these historical trends.
Notably, there's been a rejection at the 50% retracement mark—$0.27, derived from its low in August at $0.05 to its December peak at $0.48—further strengthening the bearish outlook.
Market Analysis
Observers in the market regard the $0.30 price threshold as vital for Dogecoin's possible bounce back, intersecting with broader market indicators making it a key target.
Daily chart technical signals depict a bearish trend, with the RSI at 32, nearing the 30 threshold indicating oversold conditions, hinting at strong short-term downward momentum.
The critical support level of $0.20, matching the low from February 3, gains prominence as traders seek firm stabilization points. Falling below this mark could intensify selling actions.
An examination of trading volumes reveals a gradual waning in buyer enthusiasm as sellers drive the market dynamics. Such a pattern often hints at extended consolidation periods or further price drops.
Kevin’s detailed analysis underscores the significance of the wider market environment, particularly Bitcoin’s trends, as a determinant of Dogecoin’s future value course. He notes that DOGE Dogecoin generally follows the market's overall mood rather than setting it.
Present market dynamics imply that Dogecoin might require elements beyond just technical signs, such as policy changes or renewed cryptocurrency market interest, for a genuine recovery.
Historical data shows that Dogecoin This current 58% drop comes after a 65% correction earlier in this market period, similar to previous price behaviors.
Traders are watching the $0.20 support point closely, as it is pivotal for Dogecoin's price trends. Successfully defending this level could serve as a stepping stone for recovery.
Technical analysis indicates that if weekly candles settle above $0.30, it could herald a move toward the 0.786 macro Fibonacci level at $0.48. But, given the current market conditions, this progression might take some time.
Trading insights also reflect a rise in short selling, demonstrating a growing bearish outlook. This trader stance can lead to abrupt price shifts if market scenarios change suddenly.
At present, the most likely path seems to be downwards, although market analysts highlight that sentiment is prone to rapid changes responding to external events.
