Dogecoin Hits 2-Month Low- Could DOGE Retest Q3 2024’s $0.08083 Lows?

• Dogecoin continues to slide, hitting a two-month low amid broader market instability and geopolitical tensions.
• With trading volume dwindling and key support levels in jeopardy, further declines could soon follow.

Dogecoin (DOGE) continues to face significant downward pressure, pushing the cryptocurrency closer to its lowest levels of the year. On Sunday, the meme coin reached its lowest trading price in two months, hitting a 24-hour low of $0.1427. This follows a consistent pattern of bearish activity, marking the fifth consecutive week of declines for Dogecoin.

With the broader market in turmoil, influenced by recent geopolitical events, Dogecoin has struggled to hold its ground. The cryptocurrency market has experienced a widespread downturn, with DOGE posting a 13.72% drop in the previous week. 

This decline is largely attributed to the volatility brought about by U.S. military actions in the Middle East, which affected market sentiment, especially in cryptocurrencies. While there was a minor recovery, as DOGE edged higher by over 0.50% on Monday to trade at $0.152, the overall outlook remains negative.

Further Declines Possible for Dogecoin

As the downward trend intensifies, Dogecoin faces increasing pressure at critical support levels. The $0.1428 support level, which aligns with the low on March 11, has proven to be a crucial threshold. 

According to analyst “Kevin” on X, holding the weekly 200 Simple Moving Average (SMA) and Exponential Moving Average (EMA) will be vital for Dogecoin.

Weekly 200 SMA and EMA are must holds for Dogecoin along with the macro .382 and down trending support. The key range is .1434-.1265, noted Kevin.

Source: X

Should Dogecoin close below the $0.1428 support level, it could trigger a further decline toward the year-to-date low of $0.1298. There’s also speculation that the cryptocurrency may retest the Q3 2024 lows, potentially dropping to around $0.08083. 

The steady decrease in trading volume, particularly in June, only strengthens these concerns. From highs of $5.1 billion, DOGE’s daily trading volume has fallen below $3 billion on average, and experts suggest it could dip below $2 billion by the end of the month.

Bearish Indicators Reflect Growing Downtrend

On the technical front, the Moving Average Convergence/Divergence (MACD) indicator is showing bearish momentum, with its signal line moving further negative, suggesting a prolonged downtrend. Additionally, the Chaikin Money Flow (CMF) stands at -0.06, reflecting weak buying pressure and capital outflows.

The Relative Strength Index (RSI), currently at 28, has entered the oversold zone, signaling that selling pressure is at an extreme. However, this condition also indicates that a reversal could be on the horizon, especially if the broader market’s sell-off begins to ease.

Source: Trading View

A price close above $0.1710 could mark the start of a reversal, potentially pushing DOGE towards the $0.20 psychological resistance level. However, until then, the pressure remains as Dogecoin continues to navigate through turbulent market conditions.