Recent weeks have seen significant fluctuations in the price of Dogecoin 
$0.07293 (DOGE). Despite cautious behavior from market participants, technical analyses and on-chain data suggest that a potential decline scenario is gaining traction. The downward break of a long-standing ascending channel is interpreted as a possible indication of a trend reversal. Some experts predict that the price could fall as low as $0.06167.
Critical Channel Breaks, Selling Pressure May Rise
The downward break of the ascending parallel channel, which Dogecoin has been trading within for years, is regarded as a strong bearish signal by analysts. Technical indicators reveal that the price was rejected at the 0.786 Fibonacci retracement level, which had previously functioned as a significant resistance point. Now, the selling pressure emanating from this zone suggests that downward momentum is increasingly building.
The break of the channel structure, which has served as support since 2018, raises market uncertainty and strengthens the likelihood of continued volatility in the coming days. Additionally, a significant transfer of approximately 300 million DOGE to Binance by a key investor further heightens the possibility of selling pressure. Experts frequently emphasize the need for market participants to closely monitor such large-scale transfers.
$0.135 Threshold May Determine New Direction
Testing the $0.135 price level is considered critical from a technical standpoint. This level is closely monitored by investors as it serves both support and resistance functions. Analysts suggest that if the price can maintain itself above this point, Dogecoin might enter a new upward trend. Conversely, failure to hold this level could lead to a continued decline towards lower price points.
Some analyses indicate that if the price cannot hold at $0.135, testing the support level around $0.06167 is highly probable. This area is seen as the last significant defense line for Dogecoin. If this support is also breached, it may not be surprising to see the price dip below $0.06, potentially creating serious pressure on market sentiment.
RSI Indicator Shows Promise, Yet Uncertainty Persists
While Dogecoin’s price declines, rising lows in the RSI (Relative Strength Index) are interpreted as a positive technical signal. This situation may indicate a weakening of selling momentum. However, experts caution that such signals alone are insufficient and must be supported by price movements.
According to an assessment by Kev Capital, a rebound could be indicated if the price revisits the $0.18 level in the short term. However, if this resistance is not overcome, new waves of selling are anticipated in the market. Therefore, it is vital for investors to remain vigilant regarding these technical levels and adjust their positions accordingly.
