Dogecoin (DOGE) Price Drops Below Key Support Levels as Sellers Dominate the Trend

Dogecoin (DOGE) rewarded investors with a 166% return in November 2024. In December, however, Dogecoin’s price failed to hold the $0.45 zone

Dogecoin (CRYPTO: DOGE) rewarded investors with a 166% return in November 2024. However, December brought a shift in momentum as the cryptocurrency failed to hold the $0.45 zone, leading to a decline in price.

Dogecoin (CRYPTO: DOGE) rewarded investors with a 166% return in November 2024. However, December brought a shift in momentum as the cryptocurrency failed to hold the $0.45 zone, leading to a decline in price.

Since then, buyers have yet to return, resulting in a bearish rally. Recently, Dogecoin lost the key moving averages and the $0.25 support level as it slipped below an immediate support level of $0.20.

During the recent market downturn, a whopping 11 million Dogecoin were purchased for over $2 Million. This massive buy is linked to one of the wallets that diligently scooped up the cryptocurrency during its dip.

Such a substantial investment at the height of the meme coin’s crash speaks volumes about the investor’s bullish faith. It seems they are aiming to capitalize on the price decrease following President Trump’s return to the White House.

On election day in the United States, Dogecoin came into play, continuing its rally after President Trump’s win. As reported by CoinDesk, the meme coin experienced a surge in price, ultimately exceeding the $0.40 mark.

On election day in the United States, Dogecoin came into play, continuing its rally after President Trump’s win. As reported by CoinDesk, the meme coin experienced a surge in price, ultimately exceeding the $0.40 mark.

According to data from CoinGlass, the total open interest for the top meme coin has also drastically dropped to $1.91 Billion.

This figure represents the collective value of trades that are currently open and actively speculating on the asset’s future price. For context, Dogecoin’s open interest reached a peak of $5.25 Billion in January.

The meme coin, which started as a small project in 2013 following an Internet joke, has since become a significant force in the cryptocurrency meme coin market.

Dogecoin Price In Red Zone: Will It Rebound Or Continue Falling?

At the time of writing, DOGE crypto was trading at $0.1845 with an intraday loss of 10%. Its market capitalization was $27.67 Billion and the 24-hour trading volume had risen to $2.07.

As seen on the technical chart, sellers have continued to dominate since December. Amid this bearish trend, Dogecoin lost many support levels, which might bring fear among buyers.

If the price remains below the immediate support level of $0.20, sellers might be seen continuing to exert pressure.

Moreover, amid this selling pressure, the price is expected to drop to a crucial level of $0.15. Once the price dives below this level, the selling pressure could increase. On the other hand, buyers might take notice if the digital asset price rebounds and surpasses $0.20.

If the price manages to rise above the 200-day EMA, the trend may flip to bullish. Additionally, if the trading volume supports this momentum, a massive bull run could be observed.

This content is for informational purposes only and should not be considered investment advice.