Dogecoin (DOGE) Price Nosedives, Enters Deep Bear Market

Dogecoin (DOGE) has dropped for five consecutive days, reaching its lowest level since Nov. 11. It has plummeted by almost 45% from its monthly high.

Dogecoin (DOGE) has experienced a steep decline, reaching its lowest point since Nov. 11. The coin has dropped for five consecutive days and is now down almost 45% from its monthly high, entering a deep bear market.

Dogecoin’s crash is largely attributed to the wave of selling intensifying in the crypto industry following the highly hawkish Fed decision. Crypto remains highly volatile, as most participants are retail investors with short investment horizons.

As Dogecoin's price continues to fall, it's crucial to identify potential support and resistance levels to gauge the coin's next move.

Dogecoin price analysis: How low can DOGE fall?

DOGE price peaked at $0.4853, a key level near the extreme overshoot of the Murrey Math lines tool. It has since dropped below the strong pivot release and the 50-day moving average (4-hour chart).

Moreover, the accumulation/distribution indicator (4-hour chart) points downward, signaling ongoing distribution.

The next critical level to monitor is $0.2293, which was the highest swing in March. This level also aligns with the horizontal line of the cup and handle pattern.

A drop below $0.2293 could increase the likelihood of DOGE falling to the major support/resistance pivot at $0.1953, approximately 30% below the current price.

Investors should be cautious of a dead cat bounce when considering buying the dip. A DCB occurs when an asset in a downtrend briefly rises before resuming its downward trajectory.