- Dogecoin is testing the crucial $0.1667 support, and if it holds, a rebound to $0.183 could be possible.
- However, bearish sentiment and low network activity suggest further downside could occur if the support level fails.
Dogecoin (DOGE) is facing significant downward pressure as it retests the crucial support level around $0.1667. Over the past week, the meme coin has experienced a 6.78% decline, with its current price hovering at $0.1667. Despite the recent bearish trend, analysts are cautiously optimistic, suggesting that DOGE may bounce back to $0.183 if the support level holds.
At the time of writing, Dogecoin has been struggling to maintain stability above $0.1667, which marks a 3.33% decline in just one day. This bearish momentum has sparked concerns among investors and analysts alike, who are evaluating whether DOGE can break through this resistance or continue its downward slide.
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Crypto analyst Ali Martinez has pointed out that if Dogecoin can successfully hold the $0.1667 support level, it could lead to a rebound toward $0.175, potentially rallying up to $0.183. However, for this to happen, DOGE needs to close above the critical $0.1667 level, which has been a struggle over the past three days. If the support is not maintained, the coin could drop even further.
A key factor in this scenario is the current market sentiment. According to AMBCrypto, Dogecoin’s weighted sentiment remains firmly negative, indicating that most market participants are bearish about its future. This negative sentiment is evident in declining network activity, with the price DAA divergence remaining negative. The lack of strong demand has raised concerns that DOGE’s recent price movements are not backed by sufficient market interest.
On top of this, the DyDx Exchange Funding Rate has remained in negative territory, signaling that investors are overwhelmingly shorting the coin in anticipation of further declines. The RVGI indicator, which tracks the strength of price momentum, also points to increasing bearish pressure as it drops into negative territory.
If the downward trend continues, DOGE could find support around the $0.161 level. However, for a rebound to $0.183, Dogecoin will need a shift in market conditions—such as favorable macroeconomic data or rate cuts—to entice buyers back into the market.
In conclusion, while Dogecoin faces significant challenges, a strong defense of the $0.1667 support could provide the catalyst for a potential rally. Investors will need to watch closely for any signs of market recovery in the coming days.
