Dogecoin (DOGE) Pressure Builds: Can It Shake Off the Bears and Reclaim $0.20?

• DOGE is currently trading at the $0.14 mark.
• The $0.20 zone is the key resistance level for Dogecoin.

With the market sentiment still in the fear zone, the majority of the assets are charted in red. The bears have been staying here for a long time. Meanwhile, the meme coin market cap has reached $46.80 billion, after losing by over 4.5%. Particularly, the dog-themed Dogecoin (DOGE) has posted a 3.36% drop in the last 24 hours.

In the morning hours, DOGE was trading at a high of $0.1503, and gradually, the bearish encounter has pushed the price down toward a low of $0.1443. At the time of writing, the meme coin traded within the $0.1449 zone, with the daily trading volume reaching $1.17 billion. The market has witnessed a liquidation of $3.08 million worth of DOGE.

An analyst chart reports using the heatmap that the $0.20 zone stands out because around 11.72 billion DOGE was accumulated there, making it a major resistance level. As many investors bought at that price, they may sell when it approaches that mark. It may likely create strong selling pressure and making it harder for the price to break above that level.

Is Dogecoin Headed for a Deeper Drop?

The four-hour technical analysis of DOGE exhibits that the Moving Average Convergence Divergence (MACD) is settled below the signal line. It indicates the bearish momentum is building as the trend is tilting downward.

DOGE chart (Source: TradingView)

Besides, the Chaikin Money Flow (CMF) indicator is found at 0.14, suggesting a healthy buying pressure in the Dogecoin market. The money is flowing into the asset, showing active accumulation, and the sentiment leans bullish.

DOGE’s ongoing downside correction might push the price down to find the $0.1442 support. If the bears gain enough momentum, it could initiate the death cross to take place and lead the price to a low at around the $0.1435 level. Assuming a bullish reversal, the Dogecoin price might move up to the nearby resistance at $0.1456. An extended correction on the upside likely triggers the golden cross to unfold, and the bulls would take the price up to $0.1463. 

The daily Relative Strength Index (RSI) value of 44.32 points out that DOGE is in a neutral to slightly bearish zone. Also, there is no overbought or oversold condition, and it could move either way from here. Furthermore, Dogecoin’s Bull Bear Power (BBP) reading, staying at -0.00354, hints at slight bearish pressure in the market. As the value is extremely close to zero, the overall momentum is weak; neither bulls nor bears are strongly dominating.

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