Dogecoin (DOGE) loses key 2024 support, More falls ahead?

Dogecoin [DOGE] has lost one of its key support levels, sparking fear among market participants as it opens the door to a potential price decline.

Amid continued bearish momentum in the broader market, DOGE has dropped 4.50% in value, at press time, and was trading at $0.0089.

Despite the price decline, market participation has increased notably, as reflected in trading volume, which has climbed 11% to $845 million during the same period.

 Another 35% fall ahead?

Looking at the daily chart, it appears that today’s decline has caused significant pressure on the memecoin, as it has lost its key support at the $0.095 level, a level DOGE has been holding since February 2024.

Based on the current price action, if the memecoin fails to reclaim this previous support, it could see a massive 35% drop in value in the coming days.

However, there is still minor support at $0.0883 that DOGE may test in the coming days and potentially reverse from this level. If not, the downside move could continue until it reaches the next key support at $0.05710.

On the daily chart, the Average Directional Index (ADX), an indicator that measures trend strength, reached 51.33 as of writing, well above its key threshold of 25, indicating that DOGE currently has strong momentum.

Is THIS price level DOGE’s bottom?

Despite the bearish price action, a well-followed crypto expert shared a post on X that is now drawing widespread attention from crypto enthusiasts. In the post, the expert noted,

The expert also described the current level as a potential bottom, adding a monthly chart showing that DOGE remains in an uptrend, taking support from an ascending trendline.

According to the chart, DOGE is now testing its third major support after 2017 and 2021,  periods that were followed by notable rallies.

Traders eye short-leveraged positions

Derivative data currently suggests that intraday traders are strongly following the prevailing trend, with short positions outweighing long ones.

According to CoinGlass, traders are closely watching the $0.0888 level on the downside and $0.0948 on the upside, which are now acting as key support and resistance levels.

The data also reveals that traders have built approximately $8.26 million in leveraged long positions and $14.46 million in short-leveraged positions at these levels.

This positioning not only reflects the current market sentiment for DOGE but also indicates that a liquidation at either key level could trigger a sharp move in either direction.

Final Thoughts 

• DOGE has lost its key support at $0.095, a level it had been holding since February 2024, and current price action now hints at another potential 35% decline ahead.
• An expert has predicted that the current level could mark DOGE’s bottom, suggesting a high probability of a strong reversal.