Dogecoin’s momentum is weakening: the Relative Strength Index (RSI) indicates a continued decline to $0.3
Dogecoin price action has entered a critical phase as technical indicators, especially the Relative Strength Index (RSI), indicate continued bearish momentum. After a steady downtrend, the RSI fell below the neutral 50% level, indicating increasing selling pressure and waning bullish interest. This shift in momentum puts the $0.3 support level in the spotlight, a crucial price floor that could determine Dogecoin’s near-term trajectory.
With market conditions showing limited upside potential, traders are focusing on whether DOGE can maintain its position at $0.3 or whether bearish momentum will push it lower. This juncture represents a crucial moment, as the interplay between technical indicators and price action will reveal the strength or fragility of Dogecoin’s market structure.
Focus on the bearish outlook for Dogecoin
Market sentiment has taken a bearish turn for Dogecoin, with recent price action reflecting increasing pressure from sellers. The shift in expectations is underscored by the cryptocurrency’s struggle to maintain higher price levels, accompanied by technical indicators such as the Relative Strength Index (RSI) heading towards oversold territory. This decline indicates weak buying momentum, leaving DOGE vulnerable to further downward movement.
Dogecoin’s recent decline below the 4-hour simple moving average (SMA) has reinforced the bearish outlook, indicating the potential for continued bearish momentum. Failure to hold above this key indicator indicates that selling pressure is gaining strength, pushing the price towards the $0.3 support level.
Furthermore, the $0.3 support level now represents a critical threshold for the market, with a break below potentially triggering additional price losses to test lower support levels. However, if the bulls can defend this level, it could pave the way for a consolidation phase or an attempt at a recovery.
As the market navigates this uncertain terrain, it is recommended to pay attention to any signs of reversal or stabilization at these levels to assess whether the meme coin can recover from this bearish phase.
Navigating Volatility: What Traders Should Watch Next
Since Dogecoin is still experiencing high volatility, the $0.3 support level is a crucial point to watch. If the price reaches this level and fails to hold, a break below it could pave the way for further declines.
After that, the next major support area is at $0.26, where a sustained pullback could find additional momentum. If the selling pressure continues, the DOGE is likely to see a deeper correction, and test lower levels.
However, holding at the $0.3 support level will serve as a basis for a possible recovery. A successful defense of this level may indicate a shift in market sentiment, with buyers stepping in to push the price higher, paving the way for a recovery towards the $0.4 mark and beyond.
