Dogecoin (DOGE) Value Stays Resilient at Major Support Floor Despite Current 3.6% Slide

Doge's Current Standing: A Rollercoaster Ride

• Dogecoin is trading at $0.1649, taking a 3.6% hit in the last 24 hours
• RSI indicators hint at severely oversold conditions across various timeframes
• DOGE manages to keep afloat above its long-term ascending channel dating back to 2015
• Big investors (whales) continue to accumulate despite the ongoing price slide
• Government adoption of Dogecoin seems off the table, as confirmed by Elon Musk

Dogecoin (DOGE) Value Stays Resilient at Major Support Floor Despite Current 3.6% Slide

Dogecoin has been on a wild ride since early March, shedding most of its late 2024 gains and tumbling under major support levels. The fun-loving meme cryptocurrency now hovers at $0.1649, reflecting a 3.6% drop in the past day.

Technical analysis paints a worrying picture. The Relative Strength Index (RSI) dipped into extremely oversold territory. On the 1-hour chart, RSI fluctuates between 25 and 27, while the 4-hour chart shows readings below 10, an uncommon occurrence that often foreshadows a rebound.

The daily RSI currently stands at 32-33, skirting but not yet diving into oversold territory. These readings suggest relentless selling pressure but also hint at potential for a price readjustment, as buyers might perceive opportunities at these levels.

One analyst on TradingView pins a 30-40% chance of DOGE plummeting further to the $0.158-$0.159 support area. On the other hand, they assign a 60-70% likelihood to a near-term bounce aiming at the $0.172-$0.175 range.

Despite the short-term bearish outlook, long-term technical indicators provide reasons to be hopeful. Dogecoin persists in hanging above its long-term ascending channel support, a trendline that's offered reliable support since 2015.

Market Breakdown

The recent pullback brought DOGE to around $0.17, hovering close to the critical 0.786 Fibonacci retracement level at $0.18395. If past patterns repeat, this could signal a turning point before a march back toward the middle of the channel, roughly $0.56.

On-chain data serves as another positive signal. The Accumulation/Distribution Line recorded 20.28 billion DOGE recently, indicating large investors continue to stack coins while prices are consolidating.

Wallet data from Santiment shows that large holders aren't jumping ship. Addresses owning between 10 million and 100 million DOGE, as well as those controlling between 100 million and 1 billion DOGE, have been steadily amassing coins throughout March. This suggests that bigger players might be gearing up for potential upward movement.

Nevertheless, Dogecoin is facing headwinds in the near future. It remains below both the 50 and 200-period moving averages on the 12-hour chart, with the 50 SMA acting as a hindrance at $0.176. A conquest of the $0.18 mark could signal the beginning of a reversal, particularly if hauled by increasing volume.

Elon Musk recently debunked rumors about the government adopting Dogecoin. Despite the playful naming of the Department of Government Efficiency (D.O.G.E.), Musk affirmed that the US government has no intention of utilizing the cryptocurrency.

Musk has hinted that he may relinquish his role with D.O.G.E. by May, having set a goal to accomplish the agency's mandate within 130 days. He told Fox News, "I think we will have accomplished most of the work required to slash the deficit by a trillion dollars within that timeframe."

Crypto forecasters remain divided on DOGE's future price action. Some point to the token's history of mighty rallies following substantial corrections, citing patterns from the 2017 and 2024 bull cycles.

Others highlight potential catalysts, such as SEC approval of proposed Dogecoin exchange-traded funds (ETFs). From a technical standpoint, the four-hour RSI breaking free from "oversold" territory combined with a breakout from a months-long falling wedge pattern may signal a recovery in the short term.

For immediate price action, analysts are focusing on Dogecoin's behavior at the current $0.165 level. If buyers make a move, a run toward $0.172 or higher could happen swiftly. But if selling pressure persists, DOGE might stretch its decline before gearing up for recovery.

Dogecoin finds itself at a crucial intersection. Though price remains above its decade-long ascending channel and large wallets silently collect coins, confirming a bullish trend will require a solid breakthrough above $0.18. If momentum picks up, mid-range targets between $0.27 and $0.56 could make an appearance.

Investors may see opportunities for a potential price readjustment in Dogecoin despite its current 3.6% drop, as buyers might perceive the oversold conditions suggested by the RSI indicators. Big investors (whales) continue to accumulate Dogecoin, hinting at a long-term bullish trend.

The ongoing bearish outlook for Dogecoin may be temporary, as technical indicators provide reasons to be hopeful in the long-term, such as Dogecoin's persistence in hanging above its long-term ascending channel support and the continued accumulation of coins by large investors.

Read also: