Is Dogecoin (DOGE) 6% Drop a Sign of Further Decline?

Dogecoin Dips 6%, Tests Critical Support at $0.31

Dogecoin (DOGE) has experienced a 6% decline, currently trading at $0.3168. The meme coin's market capitalization stands at $46.68 billion, marking a 4.37% decrease over the past day. Trading volume has also dropped by 27.13%, reaching $2.48 billion, indicating reduced market activity.

Technical Analysis

DOGE is currently testing a key support level at $0.31. A breach of this level could trigger a drop to the next support at $0.28. Resistance lies at $0.34, and a breakout above this level could push the price towards $0.37 in the short term.

The Relative Strength Index (RSI) is at 37.96, indicating oversold conditions. However, the RSI average of 42.93 suggests that DOGE is struggling to gain momentum. Both values point to weak buying pressure.

Moving averages (MAs) present a bearish outlook. The 9-day MA is $0.32637, while the 21-day MA is $0.37758. The downward MA crossover signals a potential for further decline.

Market Outlook

Current price action suggests bearish sentiment, with no imminent recovery in sight. For a reversal, DOGE requires strong buying momentum to overcome resistance levels. If buyers remain hesitant, the token could continue to face selling pressure.