Dogecoin Rally Fades as Price Drops Over 10% Amid Bitcoin Slump

Dogecoin Price Dips Over 10%

Dogecoin (DOGE) has experienced a significant decline over the past 24 hours, falling by more than 10%. This drop coincides with a broader market downturn, with Bitcoin declining to $69K and causing a 3.2% decrease in the overall crypto market.

Brief Market Surge

Prior to this decline, DOGE enthusiasts witnessed a brief surge in its value. On October 29th, the popular memecoin reached a six-month high of approximately $0.1792. This surge was largely attributed to a social media post by Elon Musk, who featured himself with a DOGE avatar on X (formerly Twitter).

Current Market Conditions

However, the rally was short-lived, and DOGE has since experienced a sharp decline. As of the time of writing, it is trading at $0.1606, with a market capitalization of $23.54 billion. Daily trading volume remains high at $2.4 billion, indicating active market activity.

Technical Analysis

Technical indicators suggest that DOGE may continue to face challenges in the near term. The 4-hour price chart shows that the MACD (Moving Average Convergence Divergence) has dipped below the signal line, indicating a bearish sentiment. Additionally, Dogecoin's price remains below both the basis and upper line of the Bollinger Bands, hinting at potential price weakness. The 9-day EMA (Exponential Moving Average) also signals a bearish trend, indicating that selling pressure could push DOGE towards its next support level near $0.150.

Outlook

Despite the current pullback, a recovery remains possible if buyers re-enter the market and push the price above the 9-day EMA. In this scenario, DOGE's next resistance level to watch would be around $0.173. However, for now, the memecoin remains under selling pressure.