Is Dogecoin Set for a Comeback After a 70% Plunge? Here's What the Charts Say

After a dramatic 70% drop from $0.46 to $0.1475 in just 120 days, Dogecoin (DOGE) is facing significant challenges. The broader meme coin market has also felt the sting, with its value plummeting 65%, from $116.7 billion to $40.46 billion in Q1 2025. But is it too late for Dogecoin, or is a reversal on the horizon?

### The Bearish Signals:

- Breaking Key Support: Dogecoin’s fall below the critical $0.15 support level has triggered concern. Fibonacci levels now suggest $0.1379 as the next major support point, and the 100- and 200-day EMA lines are in a negative crossover, solidifying the current bearish trend.

- Crypto Whale Sentiment: With market volatility soaring, many whales seem to be pulling away from meme coins, further eroding trust in Dogecoin’s ability to hold steady.

### Bullish Hints Amidst the Decline:

- Positive RSI Divergence: Despite the steep drop, the RSI shows positive divergence, hinting at a potential oversold condition and a possible bullish reversal.

- Intraday Rejection & Recovery: A 4.07% intraday gain after a rejection from lower levels indicates that Dogecoin might be building momentum for a recovery.

- Critical Support at $0.13: Fibonacci analysis points to the $0.13 level as a critical support, where Dogecoin could find a base to rally from. This level also aligns with a long-term support trendline from October 2023.

### The Outlook:

- Futures Sentiment Shifting: A rise in long positions on Dogecoin futures suggests that some traders are betting on a recovery, increasing the long-to-short ratio. This shift could fuel a short-term rally.

- Resistance at $0.1656: If Dogecoin manages to recover, the next major resistance lies at the 20-day EMA at $0.1656 — a critical level to watch for a sustained bullish trend.

### Conclusion:

Despite the significant downturn, there are several signals indicating a potential reversal for Dogecoin. If the $0.13 support holds, and bullish sentiment continues to grow, we could see Dogecoin test resistance levels at $0.1656 in the near term. Keep a close eye on the market sentiment and key technical levels for the next big move in DOGE!

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