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Dogecoin Slides 4% as Chart Points to More Pain Ahead

MarketDash Editorial Team
5 hours ago
Dogecoin dropped over 4% Monday as technical indicators flash warning signs. The meme coin is testing critical support at $0.13, and a breakdown could send it tumbling toward $0.08 as bearish momentum builds across the crypto market.

Dogecoin (DOGE) dropped over 4% on Monday, and the technical picture suggests this might not be just another dip to buy. The meme coin is testing a crucial support level, and if that floor gives way, traders are eyeing a potentially significant slide toward $0.08.

Every Rally Gets Shut Down

Here's the problem for Dogecoin bulls: the chart isn't cooperating. DOGE has been locked beneath a well-defined descending trendline since October, and every attempt to break free has been swatted back down. Each bounce stalls at a lower high than the previous one, which is textbook bearish momentum.

The Supertrend indicator has flipped bearish, and the Parabolic SAR dots are sitting above price. That's technical speak for "any bounces you see are probably just temporary relief rallies, not the start of something bigger." When both indicators align like this, it typically means corrective moves rather than genuine reversals.

The $0.13 Line in the Sand

Right now, $0.13 is the most important number on the chart. Dogecoin is basically sitting right on top of this support level, and intraday trading has already seen price slip below it temporarily. If DOGE posts a confirmed daily close beneath $0.13, it would open up downside risk toward the next major demand zone near $0.08.

That $0.08 level isn't random. It lines up with where buyers accumulated earlier in the year, making it the next logical spot where enough demand might materialize to stabilize the selling. But getting there would mean another significant leg down from current levels.

For context on what it would take to change the narrative: As long as Dogecoin stays below the $0.15 to $0.16 range, downside risk remains the primary concern. To actually start neutralizing this broader bearish structure, DOGE would need a clean daily close above $0.18. That's a pretty tall order given current momentum.

Follow the Money

The flow data tells a story that aligns with the chart. Roughly $15 million exited Dogecoin on December 15, right around the $0.13 region. That's not what accumulation looks like. That's distribution, meaning holders are gradually selling into whatever buying interest exists.

The derivatives market paints a similar picture. Open interest continues to decline even as trading volume picks up, which suggests traders are closing positions rather than opening fresh bullish bets. When you see liquidations, they're concentrated in long positions while shorts have faced limited pressure. Translation: the leveraged crowd betting on upside keeps getting squeezed out.

Short-Term Charts Accelerate the Breakdown

Zooming into the 2-hour timeframe shows the breakdown accelerating. Dogecoin has broken below short-term descending support and failed to reclaim it. Bollinger Bands are expanding to the downside, signaling increasing downward momentum rather than stabilization or consolidation.

DOGE has also slipped below all major short-term exponential moving averages. The $0.135 to $0.143 zone that previously acted as support has now flipped to overhead resistance. That's a bearish role reversal that typically takes time to undo.

Broader Crypto Weakness Piles On

Dogecoin isn't suffering alone. The broader meme coin and altcoin space is under pressure, which creates a difficult backdrop for any individual token trying to rally. Shiba Inu (SHIB) dropped over 3% on the same day. Bitcoin (BTC) declined more than 2%. Cardano (ADA) slid around 3.5%.

This risk-off sentiment across crypto markets reinforces the technical weakness in Dogecoin's chart. When the entire sector is selling off, it's harder for individual coins to buck the trend, especially ones already showing significant technical damage.

What Comes Next

The setup here is straightforward, if not particularly encouraging for DOGE holders. The $0.13 support level is under immediate pressure. A confirmed break below opens the path toward $0.08. Momentum indicators are bearish. Money is flowing out. Derivatives positioning shows distribution rather than accumulation. And the broader market environment isn't helping.

For traders looking for a more constructive signal, you'd want to see at minimum a reclaim of the $0.15 to $0.16 zone with follow-through. Better yet would be a daily close above $0.18, which would suggest the bearish structure is finally breaking down. Until then, the path of least resistance appears to be lower.

None of this means Dogecoin can't rally. Crypto markets are volatile, and sentiment can shift quickly. But right now, the weight of the evidence suggests more downside before any meaningful bottom forms. The chart, the flows, and the derivatives all point in the same direction, and that direction isn't up.

Back to News

Dogecoin Slides 4% as Chart Points to More Pain Ahead

MarketDash Editorial Team
5 hours ago
Dogecoin dropped over 4% Monday as technical indicators flash warning signs. The meme coin is testing critical support at $0.13, and a breakdown could send it tumbling toward $0.08 as bearish momentum builds across the crypto market.

Dogecoin (DOGE) dropped over 4% on Monday, and the technical picture suggests this might not be just another dip to buy. The meme coin is testing a crucial support level, and if that floor gives way, traders are eyeing a potentially significant slide toward $0.08.

Every Rally Gets Shut Down

Here's the problem for Dogecoin bulls: the chart isn't cooperating. DOGE has been locked beneath a well-defined descending trendline since October, and every attempt to break free has been swatted back down. Each bounce stalls at a lower high than the previous one, which is textbook bearish momentum.

The Supertrend indicator has flipped bearish, and the Parabolic SAR dots are sitting above price. That's technical speak for "any bounces you see are probably just temporary relief rallies, not the start of something bigger." When both indicators align like this, it typically means corrective moves rather than genuine reversals.

The $0.13 Line in the Sand

Right now, $0.13 is the most important number on the chart. Dogecoin is basically sitting right on top of this support level, and intraday trading has already seen price slip below it temporarily. If DOGE posts a confirmed daily close beneath $0.13, it would open up downside risk toward the next major demand zone near $0.08.

That $0.08 level isn't random. It lines up with where buyers accumulated earlier in the year, making it the next logical spot where enough demand might materialize to stabilize the selling. But getting there would mean another significant leg down from current levels.

For context on what it would take to change the narrative: As long as Dogecoin stays below the $0.15 to $0.16 range, downside risk remains the primary concern. To actually start neutralizing this broader bearish structure, DOGE would need a clean daily close above $0.18. That's a pretty tall order given current momentum.

Follow the Money

The flow data tells a story that aligns with the chart. Roughly $15 million exited Dogecoin on December 15, right around the $0.13 region. That's not what accumulation looks like. That's distribution, meaning holders are gradually selling into whatever buying interest exists.

The derivatives market paints a similar picture. Open interest continues to decline even as trading volume picks up, which suggests traders are closing positions rather than opening fresh bullish bets. When you see liquidations, they're concentrated in long positions while shorts have faced limited pressure. Translation: the leveraged crowd betting on upside keeps getting squeezed out.

Short-Term Charts Accelerate the Breakdown

Zooming into the 2-hour timeframe shows the breakdown accelerating. Dogecoin has broken below short-term descending support and failed to reclaim it. Bollinger Bands are expanding to the downside, signaling increasing downward momentum rather than stabilization or consolidation.

DOGE has also slipped below all major short-term exponential moving averages. The $0.135 to $0.143 zone that previously acted as support has now flipped to overhead resistance. That's a bearish role reversal that typically takes time to undo.

Broader Crypto Weakness Piles On

Dogecoin isn't suffering alone. The broader meme coin and altcoin space is under pressure, which creates a difficult backdrop for any individual token trying to rally. Shiba Inu (SHIB) dropped over 3% on the same day. Bitcoin (BTC) declined more than 2%. Cardano (ADA) slid around 3.5%.

This risk-off sentiment across crypto markets reinforces the technical weakness in Dogecoin's chart. When the entire sector is selling off, it's harder for individual coins to buck the trend, especially ones already showing significant technical damage.

What Comes Next

The setup here is straightforward, if not particularly encouraging for DOGE holders. The $0.13 support level is under immediate pressure. A confirmed break below opens the path toward $0.08. Momentum indicators are bearish. Money is flowing out. Derivatives positioning shows distribution rather than accumulation. And the broader market environment isn't helping.

For traders looking for a more constructive signal, you'd want to see at minimum a reclaim of the $0.15 to $0.16 zone with follow-through. Better yet would be a daily close above $0.18, which would suggest the bearish structure is finally breaking down. Until then, the path of least resistance appears to be lower.

None of this means Dogecoin can't rally. Crypto markets are volatile, and sentiment can shift quickly. But right now, the weight of the evidence suggests more downside before any meaningful bottom forms. The chart, the flows, and the derivatives all point in the same direction, and that direction isn't up.