Dogecoin at Risk: DOGE Price Crucial Breakdown Could Spell Trouble

Key Takeaways:

• Dogecoin price is signalling a crucial breakdown below the $0.1220 support zone.
• DOGE is trading well below a key bearish trend line with resistance at $0.1420 on the daily chart.
• There could be a strong decline toward $0.1070 or even $0.0865 in the coming days.

DOGE traded below a major support at $0.1220. Dogecoin price is struggling and might continue to move down toward $0.1070.

Dogecoin Price Takes Hit

Earlier this month, Dogecoin attempted a close above the $0.1620 resistance zone. However, the bears were active and defended against an upside break. The price started a fresh decline and traded below the $0.150 support zone, like Bitcoin.

The bears were able to push the price below the 76.4% Fib retracement level of the upward move from the $0.1200 swing low to the $0.1743 high. More importantly, DOGE settled below the 50-day simple moving average and $0.140.

The price is now trading in a bearish zone and attempting a close below the $0.120 support zone. There is also a key bearish trend line forming with resistance at $0.1420 on the daily chart.

The current daily candle is signalling a strong bearish pressure below $0.1250. DOGE is also putting pressure on other major meme coins like PEPE and SHIB. If there is a daily close below the $0.120 support, there could be more downside. The first support sits near the 1.236 Fib extension level of the upward move from the $0.1200 swing low to the $0.1743 high at $0.1072.

If Dogecoin bulls fail to defend the $0.1072 support, it could spark heavy losses. In the stated case, the bears could aim for a downside thrust toward the $0.0865 support region.

Can DOGE Recover?

Conversely, DOGE price might attempt a recovery wave. Immediate resistance on the upside is near the $0.1328 level. The first major resistance is forming at $0.140. The next key resistance sits near the trend line and $0.1420.

The main resistance is now forming near the 50-day simple moving average at $0.150. A daily close above the trend line and then $0.150 could open the doors for a fresh rally. In the stated case, Dogecoin could rise and test the $0.1740 resistance.

Overall, DOGE is signaling a bearish breakdown below the $0.120 support. It seems like the bears are aiming for more downsides toward $0.1072 or even $0.0865 in the near term.