The latest selloff in the cryptocurrency market has dealt a blow to leading altcoins, with Dogecoin notably losing technical ground. DOGE is now trading near the 0.085 dollar level after slipping below a critical support zone that investors had been watching closely. This shift has fueled speculation on whether the recent decline marks a bottom or if further selling pressure is on the horizon.
Dogecoin loses crucial support zone
During the latest correction, Dogecoin slid below several moving averages used to track both its short and mid term trends. The ascending support line that had been guiding price action since February also gave way. From a technical analysis perspective, breaking this trendline may signal that buyers have lost control, at least in the short term, and that overall market structure has weakened.
Despite this downturn, Dogecoin has attempted to stabilize around the 0.08 dollar mark, albeit with limited success. A noticeable spike in trading volume during the steep pullback suggests that more vulnerable investors may have been exiting the market. While similar panic-driven selloffs have sometimes marked the final stage of previous corrections, this time the data is insufficient to confirm such a reversal.
Glossary: The RSI, or Relative Strength Index, is a technical indicator that measures speed and strength of price movements. Typically, readings below 30 indicate an oversold zone, while those above 70 point to overbought conditions.
Momentum indicators also suggest Dogecoin is approaching oversold territory. The RSI has nearly returned to levels seen before short-term rebounds. Still, analysts caution that an oversold reading alone is not enough to confirm a reversal if the broader trend remains negative. For most market observers, the 0.10 dollar threshold is a critical level—unless DOGE reclaims this region, the recovery momentum is likely to remain weak.
A fresh surge in technical strength for Dogecoin depends heavily on reclaiming the 0.10 dollar zone. Following the recent breakdown, this area now serves as a major resistance and could attract renewed selling should prices rebound towards it.
Selling pressure persists for Shiba Inu
Elsewhere in the meme coin segment, Shiba Inu has continued to face downward pressure. SHIB, which has recorded sharp declines over recent weeks, remains below several key technical levels. This continued weakness points to eroding investor confidence and waning speculative interest in the token.
Analysis of the price action shows SHIB is nearing a critical inflection point. Should current support zones hold, the token could move sideways for a period, providing a base for stronger future recoveries. However, a breach of these supports would likely reintroduce downside risks. While momentum indicators show selling has cooled somewhat compared to the initial sharp drops, there is not yet a confirmed turnaround for SHIB.
TON and ETH display stronger resilience
Despite intense volatility across the market, Toncoin has shown relative resilience compared to many large cap altcoins. After dropping from its May highs, TON found support in the 1.50 to 1.55 dollar range and remains close to its longer-term moving averages. This suggests that broader market structure for TON is still intact, despite short-term weakness.
The next significant challenge for TON lies between 1.75 and 1.85 dollars, a region that previously acted as support and now serves as resistance. On the Ethereum front, there are early signs of stabilization after weeks of heavy selling. ETH staying above recent lows is viewed as a key development that indicates buyers are stepping back into crucial support areas.
Analysts observe that momentum indicators for Ethereum are showing early recovery signals, and prices appear to be forming a higher low—a pattern often seen at the start of trend reversals. Even so, market participants remain cautious, and whether the upward moves in ETH and major altcoins will prove sustainable remains to be seen in the coming weeks.
