Will Dogecoin (DOGE) Survive the Ongoing Supply Flood and Stage a Rebound Rally?

With a massive liquidation spree hitting the crypto market, Dogecoin faces significant selling pressure, resulting in a sharp decline.

Dogecoin (CRYPTO: DOGE) price shows a significant correction on the 4-hour chart amid the latest market crash.

After failing to reach the $0.50 psychological mark, the DOGE rally peaked at $0.4846 on December 8, 2024.

Since then, increased market volatility has dampened buying pressure for Dogecoin. After breaking below the 200-EMA line on the 4-hour chart, DOGE crashed to a 24-hour low of $0.3574 as the broader market corrected.

However, Dogecoin’s price action shows a lower price rejection, currently trading at $0.35962. The sudden surge in supply, which triggered the massive crash, has led to a bearish crossover between the 20-EMA and 200-EMA lines.

Furthermore, the increased bearish momentum on the 4-hour DOGE has caused a decline in the 4-hour RSI, which has entered the oversold zone and is signaling a sell.

This limits the chances of a double bottom forming at $0.35, as the Dogecoin price bounced from similar levels in November. Therefore, the technical indicators suggest that a bullish reversal is unlikely.

Dogecoin Key Price Levels

If the Dogecoin uptrend continues above the 23.60% Fibonacci level at $0.3732, it will face multiple dynamic resistances, including the 200-day and 20-day EMA lines. These could hinder the uptrend, making it difficult for the price to reclaim the $0.40 mark.

Conversely, speculative traders in the meme coin space are likely to exit their positions as market volatility increases. In such a case, the Dogecoin price will likely retest the crucial $0.34 support, with added pressure.

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