Dogecoin price prediction: Is DOGE at risk of falling below $0.128?

Dogecoin's Bearish Descent

Dogecoin has experienced a significant decline of over 7% in the past week, with technical indicators and metrics presenting a bearish outlook.

Descending Triangle Pattern

Dogecoin's daily chart has formed a bearish descending triangle pattern since April. Despite attempts to break above the upper trendline, the meme coin has faced rejection, increasing the likelihood of a southward breakout if prices fall below $0.128.

Supporting Metrics

Several metrics support this bearish scenario. Dogecoin's velocity has decreased, indicating less frequent usage in transactions. Its MVRV ratio is negative, suggesting that holders are currently in a loss. Additionally, the total number of holders remains stagnant, indicating a lack of new investors.

Sentiment and Social Dominance

Dogecoin's Social Dominance has plummeted last week, reflecting a decline in its popularity. Bearish sentiment also prevails in the market, as evidenced by its low Weighted Sentiment.

Price Prediction

To assess the potential for a bearish breakout, market indicators were analyzed. Dogecoin's price remains below its 20-day Simple Moving Average (SMA), as per the Bollinger Bands. Its Relative Strength Index (RSI) is below the neutral mark, while the Chaikin Money Flow (CMF) has also declined, further indicating a potential price drop.

Support Levels

Hyblock Capital's data reveals potential support levels for Dogecoin before a bearish breakout to $0.128. Strong supports exist near $0.143 and $0.139. If Dogecoin reverses trend after hitting any of these levels, it may recover to $0.146.

Conclusion

If a bearish breakout occurs below $0.128, Dogecoin could lose much of its March gains. However, if it finds support at any of the identified levels, it may have the potential to regain upward momentum.