Dogecoin (DOGE) is in a tough spot as bearish forces continue to dominate the market. Currently trading below a key downtrend line, DOGE is facing increasing pressure that could push the price towards the critical support level of $0.09149. With the bearish trendline acting as a powerful resistance, any failure to hold this support could signal a further move lower.

This article aims to provide a comprehensive analysis of Dogecoin’s current negative outlook, highlighting its position below trendline resistance and the potential implications of a break below the $0.09149 support level. By examining key technical indicators and market sentimentThis article aims to provide insights on whether DOGE will continue its downward trajectory or if it will experience a trend reversal.

With a market capitalization of over $14 billion and a trading volume of over $471 million, Dogecoin was trading at around $0.9683, up 1% at the time of writing. Over the past 24 hours, its market capitalization increased by 1.01%, while trading volume decreased by 3.71%.

Price Action Analysis: Assessing Downward Pressure on Dogecoin

On the 4-hour chart, Dogecoin, trading below the 100-day plain moving average (SMA), is showing consistent bearish momentum. cryptocurrency It is currently consolidating just above the USD 0.09149 level.

This consolidation near the critical support level suggests that despite brief attempts at a recovery, selling pressure remains dominant. If DOGE fails to maintain its position above $0.09149, it could trigger an extended decline, potentially driving the price lower as bears remain in control.

Furthermore, on the 4-hour chart, the Relative Strength Index (RSI) is set at 45%, not exceeding 50%. This inability to gain traction above the midpoint reflects sustained bearish momentum, suggesting that downward pressure may continue as the RSI position below 50% reinforces the likelihood of further bearish market activity.

On the daily chart, Dogecoin continues to show a noticeable bearish move below the 100-day SMA and trendline. The cryptocurrency is currently approaching the support level at $0.09149, indicating ongoing downward pressure and potential If this support does not hold, further declines may occur.

Finally, the RSI signal line on the one-day chart fell to 41%, falling below the 50% threshold, reflecting a change momentum which may lead to a further decline in the price of DOGE.

Potential Scenarios: What could happen if DOGE breaks above $0.09149?

If Dogecoin breaks through the $0.09149 support level, several scenarios could play out. A successful break below this key support could intensify the decline tendencypotentially driving DOGE towards the $0.07456 support range. If this level is broken, the price could continue to decline to test the $0.0559 support level and possibly explore even lower support zones.

On the other hand, if Dogecoin holds above $0.09149 and reverses the downtrend, it could signal a bullish turnaround that could set the stage for a rally toward the trend line resistanceA successful breakout of this trendline could initiate a significant uptrend, potentially pushing DOGE towards $0.1293 and higher.

Featured image from Unsplash, chart from Tradingview.com