Dogecoin Price Closes Daily Candle With Lower Wick, Why Another Crash Could Be Coming

NewsBTC
Updated
Mitrade
coverImg
Source: DepositPhotos

Dogecoin’s price action has been under intense pressure after another support level at $0.175 failed to hold, leading to a decline toward a crucial zone. The latest daily candle closed with a lower wick after a rebound from the $0.143 level, but technical analysis of the Dogecoin price warns that there may still be more volatility. 


Despite a temporary rebound in the past 24 hours from $0.143, there are lingering risks of another downturn. Notably, crypto analyst Trader Tardigrade noted in an analysis that there’s still more work to be done for Dogecoin price reversal to occur. 


Price Rejection At $0.143: Temporary Rebound Or Weak Recovery?


Crypto analyst Trader Tardigrade highlighted Dogecoin’s interaction with the $0.143 support level, noting that the daily candle formed a lower wick at $0.14297 before bouncing. This development suggests that buyers stepped in at this price level to prevent more breakdown. However, Tardigrade cautioned that this price rejection alone is not a confirmation of a sustained recovery. The market could still see further tests of this level, potentially with an eventual brief breakdown before any meaningful uptrend can take place.


The recent decline follows an earlier warning from Tardigrade, who had identified $0.143 and $0.128 as reversal levels after Dogecoin closed below $0.175. Once that support was lost, sellers gained control and pushed the price downward. Although Dogecoin has managed to hold $0.143 for now, the market sentiment remains fragile in fear zone, and it is yet to be clear whether the latest bounce has enough strength to lead to a reversal or if more downside is ahead in the coming days.


More Dogecoin Price Manipulation Before A Real Reversal?

Dogecoin has been caught in a persistent downtrend over the past two weeks, mirroring the broader weakness seen across the crypto market. This sustained decline has resulted in the leading meme coin losing multiple key support levels in rapid succession, essentially erasing the bulk of its price gains in the final quarter of 2024.  


Investors are currently rolling back on their investments in DOGE, even though it has become known as the choice for retail investors compared to Bitcoin and other large-market cap cryptocurrencies. According to on-chain data, investor sentiment around Dogecoin is at its most negative level of -0.93 in over a year.

Tardigrade’s analysis suggests that Dogecoin could still experience price manipulation in the form of a brief dip below $0.143 before recovering. “Price rejection is only the first early sign of reversal. We still need to monitor the price action,” he said. 


This outlook looks similar to that of another crypto analyst who noted that Dogecoin might reach as low as $0.12 in the current downtrend before undergoing any major bullish reversal.


At the time of writing, DOGE is trading at $0.1702, fluctuating within a tight range between $0.1624 and $0.1726 over the past 24 hours.


Dogecoin

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
XRP Price Builds Base—Short-Term Rally May Be BrewingXRP price started a fresh recovery wave above the $2.120 zone. The price is now consolidating and might clear the $2.350 resistance zone. XRP price started a fresh recovery wave above the $2.120
Author  NewsBTC
4 hours ago
XRP price started a fresh recovery wave above the $2.120 zone. The price is now consolidating and might clear the $2.350 resistance zone. XRP price started a fresh recovery wave above the $2.120
placeholder
XRP fails to surpass a key resistance level as Ripple secures first Dubai license Ripple revealed that it has received licensing from Dubai's Financial Services Authority.
Author  FXStreet
8 hours ago
Ripple revealed that it has received licensing from Dubai's Financial Services Authority.
placeholder
XRP Bulls Struggle To Break Key Resistance At $2.2546: What’s Next?XRP bulls are making a strong push, but the $2.2546 resistance level is proving to be a tough barrier. After a steady upward climb, buying momentum has weakened as sellers step in to defend this key
Author  NewsBTC
9 hours ago
XRP bulls are making a strong push, but the $2.2546 resistance level is proving to be a tough barrier. After a steady upward climb, buying momentum has weakened as sellers step in to defend this key
placeholder
Ethereum Price Forecast: Staking could be catalyst to drive ETH's price 'more than Pectra upgrade': K33 ResearchEthereum (ETH) traded around $1,860 in the Asian session on Thursday as its price remained largely subdued by bearish sentiment weighing on the general crypto market.
Author  FXStreet
Yesterday 08: 03
Ethereum (ETH) traded around $1,860 in the Asian session on Thursday as its price remained largely subdued by bearish sentiment weighing on the general crypto market.
placeholder
XRP Bulls Ready to Charge—Upside Break May Spark RallyXRP price started a fresh recovery wave above the $2.00 zone. The price is now showing positive signs and might clear the $2.250 resistance zone. XRP price started a fresh recovery wave above the
Author  NewsBTC
Yesterday 05: 38
XRP price started a fresh recovery wave above the $2.00 zone. The price is now showing positive signs and might clear the $2.250 resistance zone. XRP price started a fresh recovery wave above the