Dogecoin (DOGE) Price Chart Not Looking Good Amid 14% Drop: Here's What's Next

Dogecoin has recently experienced some price movement that suggests more downward pressure may be on the horizon, despite already falling 14% from recent highs.

Dogecoin (CRYPTO: DOGE) has seen some price action recently that suggests more downside could be on the horizon, despite the meme cryptocurrency already falling 14% from recent highs.

Here's a technical analysis of the DOGE/USDT daily chart that highlights some concerning signals for DOGE.

Dogecoin attempted to push through the $0.28 resistance level but failed to continue building momentum. This rejection led to a substantial decline of about 14%, showing that sellers are currently dominating the market.

The failure to keep prices sustained above this threshold indicates a fundamental weakness in buying pressure. Without stronger bullish sentiment, DOGE may have difficulty regaining upward momentum in the near term.

Bollinger Bands suggest increasing bearish pressure

The price action is currently drifting toward the lower Bollinger Band, which usually signals increasing selling pressure in the market. Moreover, the Bollinger Bands are widening, suggesting that volatility is increasing - often a precursor to continued price movement in the prevailing direction.

With DOGE trading near the lower band, bearish signals are strengthening, pointing to a potential further decline or consolidation at lower price points.

MACD confirms bearish sentiment for Dogecoin

Technical traders watching the MACD indicator will note that it's firmly in bearish territory. The signal line (orange) has crossed below the MACD line (blue), and the histogram is showing red bars.

These factors collectively reinforce the current downward momentum. Without any visible signs of reversal in this indicator, the downtrend is likely to continue in the short term.

Support levels to watch for DOGE meme coin

A descending trendline is visible on the chart, acting as strong resistance and keeping Dogecoin's price within a descending channel. Currently, DOGE is testing a crucial support zone around $0.24, which is a critical point for the cryptocurrency.

If this support level fails to hold, traders could see further declines toward $0.20 and potentially as low as $0.15, considering historical support levels.

What's next for Dogecoin?

Dogecoin is in a short-term bearish trend, with multiple technicals suggesting continued weakness. The recent rejection at $0.28, followed by the substantial 14% decline, serves as confirmation that sellers are in control of the market. If the current support at $0.24 breaks down, DOGE could experience additional declines toward $0.20 or potentially lower levels.

For DOGE to reverse this bearish trend, it would need to decisively break above the descending trendline that has been capping its price movement and establish support above the $0.28 level. Until these conditions are met, caution is advised for Dogecoin investors.