Due to its high volatility potential and Elon Musk’s support, many crypto investors preferred it for short-term gains. However, as the bear market’s challenging environment intensified, the DOGE price started trading in a narrow range. Moreover, the downward movement continues, and investors need to be cautious about certain critical areas.
The DOGE price that has become even more stagnant recently may be on the verge of a larger loss series. Today, many altcoins hit their weekly lows as BTC showed more weakness. The situation is no different for DOGE. With the breakdown of the descending triangle formation, which has been becoming clearer on the chart for a while, the decline can be confirmed. A potential loss of 50% is likely in the possible downward wave.
There is a significant support area on the weekly chart. The $0.059 support, which has been protected since June of last year, has been tested many times. However, we have not seen long-term closings below it. The lower wicks tell us that buyers are entering the game at the last moment.
Despite the strong defenders of the support zone, DOGE feels increased pressure due to the decreasing resistance trend line that has been active since November 2022. When this resistance intersects with the critical support level, the decreasing triangle we mentioned earlier is formed, and a 50% loss risk arises.
If the formation that has become apparent on the long-term chart breaks against the DOGE bulls, we can see the price erode to $0.030. This means that the current spot price can be halved. Investors may need to be on high alert for closures below $0.059 for this reason.
In the opposite scenario, if the decreasing resistance line is tested, the price is likely to increase by 16%. However, RSI readings currently indicate that bears are in control. Additionally, Bitcoin‘s price has also dropped below $26,200 at the time of writing this article, so a rapid decline may occur at least in the short term.
In summary, the DOGE price performance will be shaped by whether the support zone between $0.059 and $0.061 will be lost or not.