Dogecoin Faces Another Tough Spot
Once again, Dogecoin finds itself in a challenging position as the meme
coin tests a multi-year trendline dating back to the hype-filled days of
2021. Both daily and weekly charts highlight the significance of this level,
with the market teetering dangerously close to a crossroads that could
determine whether the current price will decline for another quarter or
stage a strong recovery.
Dogecoin Could Drop Even Further
On the weekly chart, Dogecoin faces uncertainty after slipping below the
0.786 Fibonacci level ($0.167) while still holding above the long-term
trendline, currently hovering around $0.157.
Dogecoin at a Critical Crossroads
On the daily timeframe, after breaking out of the descending channel on
February 24, Dogecoin attempted to re-enter on March 2 and 3 but was quickly
pushed back below the channel’s bottom.
Subsequent rejections on March 6 and 26 confirm that sellers remain firm,
while declining volume suggests buyers are struggling to regain
momentum.
Dogecoin’s fate now depends on its interaction with the long-term
trendline, which has played a crucial role in past market cycles. If buyers
step in strongly at this intersection, Dogecoin could attempt to reclaim the
lower boundary of the descending channel.
However, if the price breaks below $0.14, the chances of a drop to $0.12 or
lower increase. If the long-term structural support holds, a recovery is
possible—otherwise, the market may face a sharp decline.
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