Dogecoin Price Loses Monthly Support Will It Fall Further?

Amid the recent sell-off in the crypto market, the dogecoin price has witnessed a steady downfall over the past two weeks. Thus, from the top of the $0.11 resistance, the price has tumbled 35.4% down to reach its current price of $0.074. The memecoin breached multiple supports during this downfall and most recently plunged below the $0.074 level. How far may this bearish breakdown tumble the Dogecoin?

Key points:
The $0.074 support breakdown sets the Dogecoin price for a 12% drop
The RSI indicator wavering low in the bearish territory indicates negative sentiment among market participants.
The 24-hour trading volume in the Dogecoin coin is $467.5 Billion, indicating a 30% loss.

On December 19th, the coin price witnessed a nearly 10% intraday loss and pierced monthly support of $0.074. Moreover, a recent Twitter poll on whether Elon Musk should step down from Twitter’s head must be attributed to this aggressive downfall. Among 17,502,391 votes, 57.5% of the people chose ‘YES’ that Musk shows step down, while 42.5% voters said ‘NO.’

Should I step down as head of Twitter? I will abide by the results of this poll.

— Elon Musk (@elonmusk) December 18, 2022



Thus, a high possibility of Dogecoin-support Elon passing the baton for Twitter head to someone else must have created more negative in the market.

Also read Breaking: Elon Musk Actively Searching For New Twitter CEO

Interestingly, the famous American rapper Snoop Dogg posted a similar tweet saying whether he should run Twitter, and out of a total of 3,398,119 votes, 81% of people said ‘YES.’ However, this tweet is mostly like a joke that just needs to be laughed out.

Back to analysis, today, the Dogecoin price is 3%, and retest the breached $0.074 mark as a potential resistance. The long-wick rejection attached to this daily indicates the sellers are defending the newly obtained barrier.

Furthermore, the post-retest downfall may tumble the coin price another 10% down to revisit the $0.065 mark.

On a contrary note, a daily candle closing above $0.074 may weaken the bearish thesis.

Technical indicator
MACD: A significant spread between the indicator’s MACD and signal indicates sustained selling in the market, which eases further correction in Doge price

EMAs: the EMA slope offers two bear signals, with the negative crossover between the 20-and-200-day EMA and a potential death crossover between the 50-and-200-day EMA.

Dogecoin Price Intraday Levels
Spot rate: $0.734
Trend: Bullish
Volatility: Medium
Resistance levels- $0.74 and $0.82
Support levels- $0.065 and $0.56