Dogecoin’s price continues to decline, stuck in a persistent downtrend that is exerting significant pressure on the market. This trend increases the likelihood of the cryptocurrency retesting its yearly low of $0.08. According to recent market analysis, Dogecoin’s (DOGE) market structure has deteriorated substantially over the past few weeks, with the asset firmly trapped in an aggressive downtrend. The price action is characterized by consecutive lower highs and lower lows, indicating a strong bearish sentiment.
Key Factors Influencing Dogecoin’s Price
The cryptocurrency’s failure to break out of its bearish channel, combined with weak bullish momentum at the $0.13 support level, suggests that the trend remains clearly bearish. The inability to make a higher low or reclaim significant resistance levels confirms the lack of strong buyer interest. This opens the door for deeper corrective actions, particularly towards areas of liquidity that are still untapped, such as the yearly low of $0.08. Volume analysis also supports this pessimistic outlook, as Dogecoin’s attempts to recover are met with weak volume, indicating a lack of conviction from buyers.
Technical Analysis of Dogecoin’s Price
Dogecoin’s price action has been decidedly bearish since its rejection at the high timeframe resistance around $0.21. The backtest of this level and the subsequent loss of control point triggered a significant shift in momentum, with sellers regaining complete control. The price has remained tightly within a descending trading channel, which has now been confirmed by multiple touches of both resistance and support. This repeated interaction with the channel boundaries highlights the strength of the current trend. Any attempt to break out higher was met with quick rejection, while any move lower was met with minimal resistance.
DOGEUSDT (4H) Source: TradingView
Expected Price Development
If Dogecoin remains in its bearish trading channel, the probability of a retest of the yearly low of $0.08 continues to increase. A strong bullish reversal would require reclaiming the low of the value range and breaking the upper boundary of the channel, but until this happens, the path of least resistance points downwards. As the market continues to shrink in a controlled manner, the lack of strong buyer interest and the presence of sell-side pressure suggest that the bearish momentum will persist. For more information on Dogecoin’s price and market analysis, visit https://crypto.news/dogecoin-price-downtrend-remains-price-eyes-yearly-low/
