Dogecoin Price News: Bearish Triangle Pattern Suggests 37% Drop

Dogecoin (DOGE) has rallied by nearly 6% in the past 24 hours, as the top meme coin bounced off its historically bullish $0.09 support.

Trading volumes during this period jumped by 62% to nearly $2 billion, a figure that accounts for nearly 12% of the asset’s circulating market cap.

Meme coins have had a rough season, but DOGE has been strangely resilient this year, booking a 22% loss while other tokens like Ethereum (ETH) have shed almost 32% of their value.

Sentiment has been improving in the past few days, as the Fear and Greed Index has recovered from a recent low of 5 to 26, meaning that we are out of the Extreme Fear zone.

DOGE Risks 37% Drop if $0.09 Level Falters

As we anticipated in our latest Dogecoin price prediction, the price bounced off the $0.09 level in the past few hours, yet bulls encountered a solid sell wall once the token reached the psychological $0.10 threshold.

A spike in trading volumes confirms that this level is once again acting as a strong floor for DOGE.

Back in August – September 2024, the price hovered above this mark for a while, and then rallied toward $0.45 shortly afterward.

We can see an obvious accumulation pattern in the daily chart, as DOGE has bounced multiple times off the $0.09 mark. However, we can see that a downtrend has formed, meaning that the market has been making lower lows every time the price hits this level.

The descending triangle formation shown in the chart has a bearish bias and could lead to a breakout below this mark, which would open room to a drop to the $0.057 level. This means a total downside risk of 37%.

The Relative Strength Index (RSI) has been on a steady uptrend even though the price has not been rising.

This could be an early indication that bullish momentum is accelerating, but a breakout above a key level like $0.10 or $0.12 needs to happen to confirm that the trend has reversed and that we have hit a local bottom.

Selling Pressure Increased After Latest Hit to Trend Line Resistance

Moving down to the hourly chart, we can see that the price has kept bouncing off $0.09 five times in the past 35 days. Buying interest has persisted. The question would be: for how long?

The latest bounce is already retreating off the trend line resistance we identified in the daily chart, which increases the odds of another pullback. If order blocks are fully drained, that support will falter.

The Relative Strength Index (RSI) is also in overbought territory, and we have seen how this has been a strong “sell signal” in all of these past five instances.

To invalidate a bearish outlook, the price would have to climb above that trend line resistance and, ideally, past the $0.11 mark to fully confirm a trend reversal.

Until that happens, DOGE is still a sell, and the odds of a breakout below $0.09 are increasing.