You’ll Never Guess What Happened to Dogecoin 🐶 (Hint: It’s Not Good)

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Buckle up, folks! 🎢

  • Dogecoin‘s recovery from December lows? More like a trip to the doghouse. 🐶
  • The DOGE price has dropped below a key Fibonacci retracement level, and it’s not looking good for the longer-running rally from August. 📉

Dogecoin (DOGE), the largest memecoin by market cap, has dropped below a short-term uptrend line on Monday, signaling an end to the recovery from December lows and potentially the conclusion of a five-month rally. 😱

Since then, prices have dropped below the 38.2% Fibonacci retracement level of the run that started in August and touched highs about 48 cents in December before dropping back. A golden rule of technical analysis says that for a market to maintain its current trend, it must hold above that level. If it fails to do so, the trend is said to have ended. And let me tell you, DOGE is not holding up its end of the bargain. 🤦‍♀️

The moving average convergence divergence (MACD) histogram is printing deeper bars below the zero line, another indication of strengthening bearish momentum. Five- and 10-day simple moving averages trend south, hinting at a bearish bias. Yikes, it’s like a perfect storm of bad news for DOGE holders. 🌪️

Support is seen at around 26 cents, the low printed on Dec. 20 followed by 23.4 cents, which marks the 61.8% retracement of the August-December rally. DOGE would need to recover to the uptrend line from December lows to invalidate the bearish outlook. Good luck with that, Dogecoin fans! 🤞

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2025-01-29 13:19