DOGE Price Decline Breaks Key Support Levels, Signaling Possible End to Five-Month Rally
Dogecoin (DOGE), the leading memecoin by market cap, fell below a short-term uptrend line on Monday, marking a potential end to its recovery from the December lows and possibly concluding a five-month rally.
Since the drop, DOGE’s price has fallen below the 38.2% Fibonacci retracement level of the rally that began in August and reached highs around 48 cents in December before pulling back. According to technical analysis, a market must remain above this level to sustain its trend. Failing to do so typically signals the end of the current price movement.
Further bearish signals are emerging from the Moving Average Convergence Divergence (MACD) histogram, which is showing deeper bars below the zero line, reinforcing the bearish momentum. Additionally, the five-day and 10-day simple moving averages are both trending downward, suggesting a bearish bias.
Key support levels are now seen at around 26 cents, the low reached on December 20, and further at 23.4 cents, which corresponds to the 61.8% Fibonacci retracement of the August-December rally. For the bearish outlook to be invalidated, DOGE would need to reclaim the uptrend line established from the December lows.
