Dogecoin recently experienced a notable decline, signaling a challenging period for the popular memecoin. This downturn occurred amidst broader market weakness, with technical indicators strongly pointing towards a continuation of bearish sentiment. Investors are now closely watching critical support levels as Dogecoin navigates increased selling pressure.
Mounting Bearish Pressure on Dogecoin
Dogecoin saw a significant drop, influenced by a wider market pullback. Analysis of lower timeframe charts reveals increasing bearish momentum, reinforced by key technical indicators. The On-Balance Volume (OBV) stands near early-August lows, indicating consistent selling pressure over the past fortnight. Simultaneously, a weakening Relative Strength Index (RSI) underscores a clear shift in momentum favoring the bears, suggesting a difficult session ahead for the cryptocurrency.
Identifying Key Support and Liquidity Zones
Following its inability to maintain the $0.224 support level, Dogecoin appears poised to retest the crucial $0.21 support zone. A week prior, this area served as a demand zone from which DOGE rallied, though that rally eventually faltered at $0.241. The 2-week Liquidation Heatmap further corroborates this outlook, showing that after $0.24 was swept, the next significant liquidity cluster lies near $0.207. This data reinforces the expectation that Dogecoin could fall deeper into the $0.20–$0.21 range, where a potential rebound might occur if buyers re-enter the market.
