Dogecoin is currently at a pivotal moment as its price hovers just above a critical support level within a descending triangle pattern. The bearish momentum surrounding the cryptocurrency suggests a potential decline toward $0.145 if support is breached.

Dogecoin Price Analysis: Descending Triangle in Focus

The Dogecoin price has formed a descending triangle pattern on the daily chart, which is typically considered a bearish continuation pattern. This formation aligns with the broader downtrend, as evident from the price trading significantly below the 200-day Simple Moving Average (SMA), currently around $0.248.

The immediate horizontal support zone lies between $0.165 and $0.17. Historically, the price has rebounded multiple times from this level, but it is now undergoing another retest. Recent price movements have been characterized by small-bodied candles forming just above this support zone, which also aligns with the lower boundary of the descending triangle.

Potential Scenarios for Dogecoin

The ongoing price action suggests that Dogecoin is nearing a critical breaking point. A breach below the $0.165 level would confirm a bearish breakdown of the descending triangle pattern, potentially triggering increased selling pressure. In this scenario, the next significant support level is around $0.145, a previous demand zone within the triangle.

On the other hand, if the $0.165–$0.17 zone holds, there is still a possibility of a range-bound bounce. However, the broader market bias remains bearish unless the descending triangle pattern is invalidated by a breakout above the descending trendline resistance, confirmed by a daily close above this level.

Indicators Signal Bearish Momentum

From a technical indicators standpoint, the bearish outlook for DOGE appears stronger at this stage:

  • The price is trading well below both the short-term 20-day Exponential Moving Average (EMA) and the long-term 200-day SMA, both of which are trending downward.
  • The Relative Strength Index (RSI) is hovering around 36, indicating the asset is approaching oversold territory.
  • The Moving Average Convergence Divergence (MACD) remains in negative territory, with the signal line positioned above the MACD line, showing no signs of a bullish crossover.

Key Takeaways for Investors

Dogecoin traders and investors should closely monitor the $0.165–$0.17 support zone. A breakdown below this level could pave the way for further declines, while a bounce from this level might offer short-term opportunities. However, the overall bearish trend suggests caution, especially given the descending triangle formation and weak technical indicators.

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