Dogecoin on the Brink: Will It Hold or Crash? Find Out!

by

So, here we are, watching Dogecoin teeter on the edge of oblivion, as it tries desperately to hold onto a thread of hope. Last night, it closed at a mind-boggling $0.17551—just hanging on above the oh-so-important confluence of two crucial lines: the old down-trend resistance from late February and the 78.6% Fibonacci retracement of that glorious 2024 rally that saw Dogecoin flirt with $0.48440. Who said crypto was predictable? Oh wait… it wasn’t!

Dogecoin’s High-Stakes Gamble

Imagine a six-month descending channel that’s basically been the Dogecoin prison, keeping it in line since it peaked at $0.48440 back in December. The middle of this channel? $0.1800. It was a reliable support until Thursday, when an 11% drop (thanks to Bitcoin‘s tantrum) completely obliterated it. The thing is, when you fail to bounce off a channel mid-line, it’s rarely a “meh” moment. If DOGE can’t close above $0.1800, then it’s likely to keep the downward trend rolling like an unstoppable freight train.

Beneath all the chaos, a black trendline—remember that?—first rejected Dogecoin rallies on March 26, April 26, and May 2. It made a grand return after the price shot through it on May 8, reached for the channel’s ceiling at $0.2540, and then got rejected twice (like an ex at a party). Now, this trendline is back in play as support, sitting at the dangerous $0.16700. Yeah, you could call this a high-stakes poker game.

If that level breaks, we’re looking at the only thing left to save us: the multi-year ascending trendline from May 2021’s all-time high, which intersects a demand zone between $0.14500 and $0.13500. If that goes, it’s lights out. The bulls would retreat, and the bears would start a party that could pull Dogecoin back to a pitiful $0.12990. Ouch.

And let’s not forget the oscillators and overlays, which are all flashing “danger.” The 14-day Relative Strength Index (RSI) is currently sitting at 34.70. It’s not oversold yet, but it’s certainly not winning any popularity contests either. In short: bearish vibes all around. 🐻

Price Targets: The Road to Nowhere?

Now, if you’re a bull, you might want to start praying for a miracle. The first sign of hope? A daily close back above $0.1800. Anything less, and any bounce might just be a temporary glitch in the matrix.

But if you’re still holding out for some good news, don’t get too excited. There’s a thick layer of resistance overhead, like a really bad ceiling fan. First up is the 20-day EMA at $0.20120, followed by the 50-day at $0.20091, the 100-day at $0.20677, and the 200-day at $0.21550. All of these averages are declining and packed together like sardines, creating a tough barrier right around the psychological $0.20 mark.

If by some miracle Dogecoin manages to break this barricade, it might just get a chance to reach the channel’s upper rail around $0.22. But even then, the bulls would have to close outside that level on a weekly basis, which is no easy feat. Only then could Dogecoin possibly reverse its downward trend and make a run for the next Fibonacci targets—$0.23484, $0.28249, $0.33014, and $0.38910. But again, don’t hold your breath.

Until then, things are looking grim. The bears have the upper hand, and the next floor, at $0.16700, is barely a cushion. If that breaks, Dogecoin’s heading towards $0.14500–$0.13500. That’s the last solid support zone. If it can’t hold there, we might as well start looking at $0.12990, or even lower, maybe all the way to $0.08. Yikes. 🐍

Read More

2025-06-06 21:09