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Dogecoin (DOGE) is trading at approximately $0.218 today, down over 6% in the past 24 hours, as sellers significantly pushed the price down to the critical range of $0.225 to $0.230. Following a strong rebound earlier this month, Dogecoin's price action is currently facing resistance near the descending trendline visible on both the daily and intraday charts. Recent updates on Dogecoin's price indicate that bearish momentum is strengthening, but bulls still hold the short-term support above $0.216.
The current price of Dogecoin
On the 4-hour chart, Dogecoin's price fell after re-testing the resistance level of $0.2345 and is currently trading near the key support level around $0.2160. This area has been tested multiple times in the past week and marks a potential decision point. The EMA20 and EMA50 on the 4-hour chart are slightly above the price, confirming that short-term downward pressure still exists.
The weekly Fibonacci retracement levels from the November high to the March low indicate that Dogecoin has struggled to maintain above the 0.236 area ($0.2136). If the weekly closing price is below this level, it will confirm a breakout failure, increasing the likelihood of a deeper correction to the support level around $0.20-$0.21.
Why is the price of Dogecoin dropping?
Dogecoin's price is weak today, primarily driven by the convergence of technical resistance levels and weakening bullish momentum. The 30-minute RSI indicator is around 37.88, indicating bearish divergence after failing to reclaim the overbought area earlier this week. The MACD indicator in the same time frame also confirms a bearish crossover, with the histogram steadily declining over the past three trading days.
Additionally, following a spike in volatility during last week's upward move, the Bollinger Bands on the 4-hour chart have started to tighten again. This contraction indicates that unless a decisive breakout occurs, Dogecoin's price volatility may remain subdued.
The Ichimoku chart on the 30-minute chart further indicates caution. The price is currently trading below the cloud, with the conversion line and baseline pointing downward. The lagging span aligns with the recent candlestick chart, suggesting weak trend continuity rather than a reversal. Overall, unless volume confirms a reversal, this pattern tends to range oscillation to bearish continuation.
Dogecoin's price trend is at a critical juncture.
Despite facing sell-offs, Dogecoin's price trend remains above a larger support level between $0.2107 and $0.2160, which coincides with the lower Bollinger Band and key EMA area. The price also aligns with the 100-day EMA ($0.2107) on the 4-hour chart. Falling below this level would put Dogecoin at risk of retesting resistance near the 200-day EMA ($0.1977).
The daily chart shows that Dogecoin is still within a descending wedge structure since the February high. To re-establish bullish control, it must break out of the wedge and reclaim $0.2345. Until then, the price remains constrained by the upper supply zone and trendline resistance.
Short-term outlook: Will DOGE crash or rebound?
If Dogecoin fails to maintain the support area at $0.2160, the next major downside target is around $0.2100 to $0.2120, followed by the range of $0.1970 to $0.2000, where the long-term moving average converges.
On the positive side, a rebound above $0.2230 would be the first signal of recovery, but bulls must break above $0.2345 with strong volume to sustain the upward move. Otherwise, the price may remain range-bound or move lower towards the end of May.
Due to RSI being close to oversold, MACD fading, and Ichimoku trend weakening, the short-term bias leans bearish unless DOGE shows a decisive rebound, with rising volume and the structural support at $0.2160 holding firm.
DOGE Price Prediction Table: May 20
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