Today, we need to carefully discuss the market of DOGE. Last night's price movement of DOGE was like a sudden storm, catching everyone off guard. So, what were the driving forces behind this crash from both news and technical perspectives?
First, let's look at the news aspect
Last night, the crypto market was indeed in a state of alarm. Unfavorable news exploded in the market like heavy bombs. Signals of tightening regulations may have cast a shadow over the market instantly. Everyone is worried whether stricter regulations will limit the growth space of DOGE and whether this once freely growing cryptocurrency will suffer a heavy blow. Meanwhile, rumors of some large institutions selling DOGE are also circulating in the market, which undoubtedly added to the already fragile market sentiment. Retail investors are easily influenced by market emotions, and once these messages came out, panic spread rapidly, leading many to choose to sell, causing DOGE's price to plummet like a flood breaking through a dam.
Then, let's take a look at the technical aspect
That is truly concerning. From this 1-hour candlestick chart, it is clear that DOGE was previously moving steadily along an upward channel, with retail investors eagerly waiting for further price increases. However, last night's crash was like a sharp blade, directly severing this upward trend line. The watershed was ruthlessly breached, and the green trend line that originally supported the price rise lost its function instantly. The price plummeted all the way down to the support level near 0.22125. Now, DOGE is standing at a critical crossroads, with the overhead resistance level of 0.24250 like a mountain, making it difficult for the price to rise. If the price cannot effectively break through this resistance level, DOGE is likely to continue looking for lower support; and if the support level of 0.22125 is effectively broken, the consequences could be dire, potentially initiating a new wave of price declines.
Financial Month Summary:
For retail investors, this sudden drop is indeed a huge test. Short-term traders were originally looking to profit from the volatility, but this crash has caused their accounts to shrink instantly, and many may have already fallen into a trapped situation. As for long-term holders, although the fundamentals of DOGE have not changed much, and community support and application scenarios still exist, watching the numbers in their accounts continuously decrease must be hard to bear.
However, this is the nature of the crypto market, filled with uncertainty and risks. Every drop is a reshuffle and also an opportunity. For experienced retail investors, they might look for buying opportunities in the downturn, waiting for a price rebound. But this also requires precise judgment and decisive decision-making, as the market changes rapidly.
So, fellow DOGE retail investors, at this critical moment, you must remain calm. Do not be swayed by panic, nor blindly follow the crowd. Carefully analyze the changes in news and technical aspects, and make rational decisions based on your risk tolerance.
Where do you think DOGE will head next under the dual pressure of news and technical factors? Will it rebound from the bottom or continue to decline?
