Market Correction Hits Dogecoin (DOGE) Hard: Is the Rally Over?

The crypto market is seeing red across the board, with Dogecoin (DOGE) taking a notable hit after a strong run. The meme crypto has shed about 22% of its value in just 24 hours, while its weekly losses have mounted to over 27%.

Dogecoin (CRYPTO: DOGE) price slipped 22% in 24 hours to $0.284 on Monday evening.

What Happened: Dogecoin’s losses follow a broader market sell-off, with Bitcoin (CRYPTO: BTC) pulling back from recent highs.

The rapid shifts in the crypto market underscore the volatility inherent in the asset class.

Dogecoin’s price surged from lows of around $0.08 in early November to highs of about $0.503 in mid-December, reflecting a rally of over 500%.

The meme coin encountered resistance at higher levels and has since entered a bearish phase.

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Resistance levels for Dogecoin are seen at $0.36652, aligning with Fibonacci retracement levels, and $0.48431, marking the peak of the rally.

On the downside, immediate support for DOGE is at $0.26921, followed by $0.18649 and the August low of $0.08100.

Technical indicators suggest bearish momentum, with Bollinger Bands showing the price breaking below the lower band, indicating strong selling pressure.

The Relative Strength Index (RSI) has dropped to 30.25, highlighting oversold conditions.

A potential short-term recovery could be on the cards, although oversold readings in a downtrend tend to persist.

Fibonacci retracement levels highlight crucial zones for potential reversals, with the 0.618 level at $0.26921 serving as a critical test for buyers.

The 0.786 level at $0.18649 could act as a subsequent support zone.

Trading volumes surged during the decline, reinforcing the ongoing bearish momentum.