Assessing Dogecoin traders’ next steps if memecoin’s price breaks THIS way

Dogecoin Approaches Support

After falling below $0.11, Dogecoin (DOGE) has reached a significant support range of $0.096-$0.01. Despite bearish momentum, DOGE's declining open interest suggests a weakening of the bearish trend.

Bearish Dominance

DOGE's reversal from $0.22 in May allowed bears to control the market, causing a series of red candles below the 20-day and 50-day EMAs.

Support Range and Potential Reversal

A potential reversal from the support range at $0.096-$0.01 could stem the decline and allow bulls to regain momentum.

$0.101 Trading Price

At the time of writing, DOGE traded at around $0.101.

Bear Pressure Continues

Since reversing from $0.22, bearish pressure has been dominant, with DOGE losing over 54% of its value in the past three months.

Descending Triangle Breakdown

The downtrend created a descending triangle pattern on the daily chart. After testing $0.129 for three months, bears broke below it, confirming the pattern.

Support Range as Resistance

The $0.01-$0.096 support range is crucial to prevent further declines. High liquidity in this zone indicates potential resistance to further pullbacks.

$0.11-$0.12 Resistance

A reversal from the support range could lead to a retest of the $0.11-$0.12 range. Above the 20 EMA, DOGE may enter a low-volatility zone.

Downside Risk

A decline below the support range could expose DOGE to further losses towards $0.08.

RSI in Oversold Territory

The Relative Strength Index (RSI) remains in oversold territory, indicating a possible bullish reversal.

Declining Open Interest

Coinglass data shows a decline in DOGE's open interest, implying uncertainty among traders. This could lead to either a reversal or consolidation.