Dogecoin DOGE Price Tests $0.21 Panic Zone, Breaking Down May Lead to Price Plunge
Dogecoin has recently shown significant selling pressure, with the upward momentum accumulated from late April to early May having significantly faded. Technical analysis indicates that the cryptocurrency is hovering near a key support level, facing downside risks.
Key Support Level Analysis:
Cryptocurrency analyst RLinda pointed out on the TradingView platform that $0.214 is the current important support level, defining it as the "panic zone".
Noteworthy Points:
1. The distribution phase from May 9-11 closed in the range of $0.2600, marking the end of this round of upward movement.
2. Subsequently, the price continued to decline and has now tested the $0.214 support level.
3. If it confirms a break below $0.2135, it may trigger long liquidations and more severe selling.
Technical Pattern Interpretation:
The current price trend exhibits the following characteristics:
- Forming a descending triangle pattern with lower highs (visible on the 2-hour chart).
- If it breaks below the triangle's bottom, it may accelerate the decline to the $0.19-$0.20 range.
Key Resistance and Support Levels for Dogecoin:
Key Price Level Indicators:
Resistance Levels:
1. $0.222
2. $0.2307 (needs to break this level to reverse the bearish trend)
Support Levels:
1. $0.2145
2. $0.2135 (breaking this will confirm the continuation of the downtrend)
3. Subsequent support levels at $0.20126 and $0.19298
