Dogecoin price action is In case of a critical decision zoneAccording to a new technical analysis shared by a crypto analyst at TradingView. This analysis comes when Dogecoin Bulls accumulates in the range $ 0.16 to successfully defend this price level over the past 24 hours.
The price action has driven the Meme coin to currently test a historical support area, and in the coming days will determine if Dogecoin breaks lower or begins a recovery to the $ 0.20 region.
Dogecoin approaching support with baissey triangle formation
The Analysts noted it Dogecoin shops within a Falling triangle pattern, A typical baissey structure that can see the price continue downwards if the support is broken. This support is at the horizontal zone between $ 0.164 and $ 0.18, emphasized as an accumulation area where buyers have previously entered.
The Ichimoku cloud indicates a persistent baisse -like trend, but the analyst flagged some early signs of fatigue at downward speed suggesting that Dogecoin may be at $ 0.16. However, confirmation is required before deciding on any raised momentum. For example, the relative strength index (RSI) has dropped to about 32.98, approaching the territory of territory but does not yet show strong deviation.
At the same time, the wave trend oscillator (WTO) is also deep in the over -sold zone, with its signal lines that begin to curl upwards that show a possible short -term bounce. On the other hand, the moving average convergence diver (MACD) has still not confirmed a reversal, as its signal line has not yet been crossed.
Sales pressure continues to delay
Dogecoin has spent most of the last seven days about $ 0.16. Interestingly, the analyst noted that the MACD -Histogram is shrinking on the negative side, and shows that Baissen is weakened. But formation of lower altitudes Reveals that sellers still exert pressure and prevent any meaningful movement upwards.
Klusteralgo, which tracks potential market -up bending points, has not yet blinked a strong rais -like signal. Still, the compression of its lines shows that a breakout either up or down can be very close. The analyst refers to this as a “critical decision zone”, where a fixed defense of $ 0.164 level can cause a move to $ 0.20 or even $ 0.21, coincides with 0.236 Fibonacci retracing level. In addition, a break over $ 0.21 and strong purchase volume can press the Dogecoin price until it reaches a strong additional resistance to $ 0.28 and then $ 0.455, according to the 0.786 Fibonacci level.
If Dogecoin fails to hold $ 0.164 support, the price may return to further until it reaches $ 0.11 to $ 0.12 zone seen in market flame. Such a feature would mainly see that Dogecoin returns to price levels that it has not traded in since the fourth quarter of 2023.
At the time of writing, Dogecoin traded to $ 0.1696.
Image from Technext, chart from TradingView
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