Dogecoin (DOGE) price decline signals a potential falling wedge breakdown

As the crypto market slides back to pre-crypto reserve announcement levels, Dogecoin witnessed a pullback of 16%.

Cryptocurrencies are sliding back to pre-crypto reserve announcement levels as the U.S. announced tariffs on French wine and other goods, sparking trade tensions. In response, China announced retaliatory tariffs on U.S. goods, setting the stage for a broader tariff war. This development led to a 16% decline in Dogecoin (DOGE).

As the cryptocurrency market slides back to pre-crypto reserve announcement levels, Dogecoin witnessed a pullback of 16%.

As the declining trend continues, Dogecoin has breached the $0.20 psychological mark with an intraday pullback of 2.80%.

Currently, the biggest meme coin, with a market cap of $28.64 billion, is trading at $0.1931. Will this declining trend lead to a retest of the $0.13 support level? Let’s explore.Dogecoin Price Crashes Under $0.20

On the daily chart, DOGE’s price trend shows a significant surge of 15.80% on Sunday after the U.S. crypto reserve announcement. However, the onset of tariff wars between the U.S. and other nations triggered a broad crypto market crash.

Dogecoin plunged by 16.78%, erasing the weekend recovery, and is now trading below the 50% Fibonacci level at $0.20. With a 24-hour low of $0.1854, Dogecoin is testing the local support trendline of a falling wedge pattern.

As the decline continues, the 50 and 200 EMA lines are converging, signaling the potential for a death cross event. Furthermore, the daily RSI is returning to the oversold territory, reflecting weakening buying pressure. These technical indicators point to a potential falling wedge breakdown rally.

Growing Bearish Positions in Futures

The futures market is witnessing a significant shift, with the long-to-short ratio now at 0.9361, indicating more short positions. Meanwhile, the funding rate is at -0.0013%, showing that sellers are paying a premium to the bulls.

Currently, the open interest in Dogecoin has dropped by 15.28% to $1.64 billion. In the past 24 hours, $16.83 million worth of Dogecoin positions have been liquidated, with long liquidations accounting for $14.33 million.

Key DOGE Price Targets

According to Fibonacci levels, a potential breakdown of the falling wedge pattern could test the 23.60% Fibonacci level at $0.1315. However, if an unlikely recovery occurs, the overhead resistance levels are at $0.20 and $0.25, near the 200-day EMA line.