Dogecoin's price is under significant bearish pressure, having dropped nearly 30% in the past week. The price struggles to gain traction, trading near crucial support levels.

The total market capitalization of meme coins has also fallen, reaching $47.53 billion, a 7.71% decrease. Currently, DOGE is testing the $0.1675 support level, identified in recent technical analyses.

Dogecoin Price Breaks Wedge Pattern, Faces Bearish Pressure

A recent sell-off pushed Dogecoin below a falling wedge pattern, resulting in a 12% decline. This formed a bearish engulfing candle, reinforcing the downward price movement. The price has reached the 38.20% Fibonacci retracement level at $0.1675, a key support level for bulls.

The bearish sentiment is further strengthened by consecutive red candles on the daily chart. DOGE's failure to hold above the broken support trendline indicates sellers remain in control. Crypto analyst Ali Martinez points to a key trendline support at $0.16. Holding this level could trigger a bounce towards higher Fibonacci retracement zones. However, a failure to bounce could prolong the correction and lead to further price declines.

Technical Indicators Show Weakness Amidst Whale Sell-Off

Technical analysis reveals persistent selling pressure. While the daily RSI is testing oversold territory, potentially signaling a short-term rebound, the MACD and signal lines have crossed negatively, suggesting continued sell signals.

On-chain metrics show significant DOGE selling by whales. Whale Alert reported a large transfer of 360 million DOGE (approximately $62.66 million) to Binance. This large whale movement suggests further selling pressure, limiting potential upside. Volume profile analysis shows decreasing buying volume, indicating a lack of support. The recent breakdown suggests traders are hesitant to buy DOGE unless support levels hold. Continued or intensified selling pressure will likely lead to further price declines.

DOGE Price Targets: Can Bulls Reclaim $2?

According to Ali Martinez's analysis, a bounce from $0.16 could potentially lead to a price return to $2. However, before such a rally, reclaiming the $0.20 level (the 50% Fibonacci retracement level) is crucial. Breaking above this psychological level could trigger further upward momentum.

Conversely, if DOGE trades below $0.16, further losses are likely. The next support level is the 23.60% Fibonacci level at $0.1315. A breakdown below this level could extend the bearish outlook, making a rally back to $2 less likely.

Dogecoin's price volatility continues, driven by whale selling and bearish technical indicators.