Dogecoin became famous from its meme roots, a vibrant community, and celebrity support, but is still under grave pressure from bearish trends and a potential sustainable decline.
The price of Dogecoin (DOGE) remains stuck inside a symmetrical triangle pattern and continues to suffer bearish market pressure. Although there are hints of whale accumulation, the trend is downward, with some important support levels at risk. General indicators-the cryptocurrency’s price action, technical indicators, and market sentiment- suggest that there could be a short-term southward breakout but only with potentially high volatility.
Bearish Sentiment Dominates Dogecoin Price Action
Dogecoin has failed to sustain the bullish trend as it continues to be affected by bearish trends in the past weeks. Trading in a symmetrical triangle pattern, Dogecoin has not shown any signs of breaking out in a bullish direction. Although the whales have been accumulating DOGE, the overall market sentiment and technical indicators are on the side of the bears.
Dogecoin: Key Support Levels at Risk
The 1-day chart shows that Dogecoin’s price retraced and failed to defend its bullish order block at $0.38, a critical resistance level. DOGE has dropped to $0.313, now a key support level. That level is the 50% retracement from the rally beginning in early December, and the ability of that level to hold will determine if further bearish movement is close.
However, even as the bulls fought to protect this level over the last fortnight, technicals are presenting a very ominous scenario. CMF is at -0.08, showing that there are large capital outflows, and the DMI shows a very strong bearish trend with both the ADX and -DI being above 20.
Symmetrical Triangle and Potential Breakout
On the 4-hour chart, Dogecoin is consolidating in a symmetrical triangle pattern, which, in itself, does not provide any clear direction. Such patterns often result in volatile breakouts, but the overall bearish sentiment is that any breakout may be short-lived or a fake-out.
Key levels to monitor include the $0.33-$0.35 zone, which can produce a false break lower, allowing the downtrend to resume its course. The market will have to make a run at $0.346 and then $0.38 for sentiment to flip around and daily action to change into bullish.
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Lack of spot demand
Despite some whale activity piling up Dogecoin, the overall market sentiment is still cautious. According to Coinalyze, there is no spot buying pressure, and the Open Interest and funding rate indicate that speculators are sitting on the sidelines. This lack of buying activity suggests that the market remains neutral to bearish, adding to the uncertainty surrounding Dogecoin’s price movement.
Conclusion: As people embark on the initial weeks of the year 2025, there is still going to be more bearish news for Dogecoin. At least, several reasons for whale accumulation are seen yet, and given the lack of strong buying pressures and technical conditions that point in the direction of further losses, a retest of the support level at $0.272 is likely. Watch out for a potential breakdown; the pattern running could be a fake-out on the way to a continuation of the bearish trend.
For Dogecoin to turn short-term in its favor, the coin must break past resistance at $0.346 and $0.38. Beyond that, the path of least resistance is lower, with a bearish price forecast in place for the next week or two.
Also Read: Bitcoin Price Steadies At $95K After Year-End Rout: What’s Next For BTC In 2025?
