Dogecoin: Is the next move a crash, not a rebound?...Market 'on alert' over $0.1 collapse theory

▲ Dogecoin(DOGE)

Dogecoin (DOGE) is once again under selling pressure after breaking below the $0.1120 level. For a short-term rebound, it needs to recover the resistance levels of $0.1085 and $0.1115, but technical indicators still point to a bearish trend.

According to NewsBTC on May 8 (local time), Dogecoin slipped below $0.110 and traded below the 100-hour simple moving average. On the DOGE/USD hourly chart based on Kraken data, a descending trend line with resistance near $0.1085 has formed. NewsBTC analyzed that if Dogecoin remains below $0.1085 and $0.1115, the likelihood of further declines could increase.

Dogecoin closed below $0.1120 and then showed a downward trend, similar to Bitcoin (BTC) and Ethereum (ETH). Subsequently, it successively gave up the support levels of $0.110 and $0.1080, and slipped near $0.1050. The low was formed around $0.1058. The decline extended from the high of $0.1172 to the low of $0.1058, and Dogecoin showed bearish signals at a level lower than the 23.6% Fibonacci retracement of that range.

Even if a rebound occurs, the first hurdle is $0.1085. NewsBTC explained that this area also has resistance from the descending trend line. For buying pressure to regain strength, it needs to break above $0.110 and then the $0.1115 resistance. The $0.1115 level also coincides with the 50% Fibonacci retracement of the decline from the high of $0.1172 to the low of $0.1058. The original text stated that if the closing price forms above $0.1115, there could be room for an ascent to the $0.1132 and $0.1145 levels.

Conversely, if Dogecoin fails to recover $0.1085, the downward trend could continue. NewsBTC presented $0.1050 as the first downside support level and analyzed that the next major support level is $0.1020. The key support level was identified as $0.10. If this level breaks, there is a forecast that Dogecoin could fall to $0.0880 or $0.0820 in the short term.

Technical indicators also support a selling dominance. The DOGE/USD hourly Moving Average Convergence Divergence (MACD) is increasing downward pressure in the bearish zone, and the hourly Relative Strength Index (RSI) remains below 50. NewsBTC presented $0.1050 and $0.1020 as key support levels, and $0.1085 and $0.1115 as key resistance levels.

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