Dogecoin (DOGE) Price is Primed for a Breakdown Below $0.3, May Trigger a 30% Plunge

The post Dogecoin (DOGE) Price is Primed for a Breakdown Below $0.3, May Trigger a 30% Plunge appeared first on Coinpedia Fintech News

The Dogecoin price has manifested acute strength in the past few years after hitting rock bottom levels during the bear market. The Bears have tried hard to restrict the rally each time the price tried to set up a strong ascending trend. As a result, the DOGE price remained consolidated below $0.1 for a long time. However, after the latest upswing, a new ATH appeared to be imminent, but the current trade setup suggests a 20% pullback is fast approaching. 

DOGE Price Following PEPE’s Footsteps

After Dogecoin & Shiba Inu, Pepe managed to attract massive attention and, in a very short time, became the third largest memecoin as per the market cap. Since then, the PEPE price has been displaying progressive moves. Meanwhile, the pattern that Dogecoin has been following in the past few months has been followed by PEPE. This hints towards a probable pullback if the top memecoin closely replicates the PEPE price rally. 

Source: X

The above charts show a comparison between both price patterns, which suggests DOGE price is closely following the PEPE price that consolidated around the ATH for a while. Meanwhile, the price failed to defend the support around $0.000017, causing a 30% pullback to reach the local bottom close to $0.0000114. Currently, the DOGE price has reached local support and if the bulls fail to initiate a rebound, it may face a 20% pullback. 

What’s Next for the Dogecoin (DOGE) Price Rally?

After the latest pullback, the Dogecoin price has dropped below the ascending trend line, which has been acting as a strong support. Moreover, the price is failing to recover the lost levels, which may raise concerns over the next price action. Hence, the DOGE price seems to be primed to lose support at $0.3 very soon. 

As seen in the above chart, the DOGE price is facing increased upward pressure that may drag the levels towards the support zone between $0.29 and $0.309. As the RSI is decremental and below the descending trend line, bearish targets have been activated for the price. Therefore, the DOGE price is expected to plunge below $0.3 and reach $0.246 at 0.382 FIB. This could be when the RSI may reach the lower threshold. If the levels trigger a rebound, the Dogecoin price may rebound and rise back above $0.3, else a drop to $0.2 could be imminent.