Dogecoin Price Approaches Critical Level at $0.21; A Drop May Trigger a Price Plunge

Currently, Dogecoin appears to be experiencing pressure from sellers after losing significant bullish energy that had developed in late April and early May. Technical evaluations suggest that the price is hovering at a critical support threshold, indicating a potential shift to a downward trend.

Analyst RLinda identified this threshold, set at $0.214, on the TradingView platform, referring to it as a retest of a critical zone.

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Panic Zone Revisiting Due to Dogecoin Decline

RLinda’s analysis indicates that Dogecoin’s distribution period from May 9 to 11 concluded within the $0.2600 range, marking the end of its recent bullish trend. During this phase, Dogecoin lost the gains it had accrued in late April and early May.

Following this, the price has been consistently declining, entering what the analyst refers to as the correction stage. This has pushed the coin to approach the $0.214 mark, currently assessed as a panic zone. A verified drop below this zone, particularly beneath the $0.2135 support line, would not only liquidate long positions but also likely escalate selling pressures, potentially triggering a significant price drop.

Notably, this price correction has exhibited lower peak formations, resulting in a triangle pattern observable on the 2-hour chart. RLinda cautioned that breaking through the triangle’s base could strengthen bearish outlooks, opening up potential targets closer to $0.20 and even $0.19.

Dogecoin Resistance and Support Levels to Monitor

Immediate resistance is observed at $0.222 and $0.2307, which are critical zones that Dogecoin must regain to counteract the current bearish trend. Surging past these levels, particularly with sustained prices above $0.23, could invalidate the negative breakdown and potentially rekindle bullish momentum. Nevertheless, RLinda emphasized that such scenarios should only be considered with clear confirmation, as existing momentum leans toward sellers.

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Conversely, the support levels at $0.2145 and $0.2135 are presently acting as the last line of defense against additional declines. A close beneath $0.2135 would affirm the trend’s continuation and push Dogecoin into a deeper consolidation phase, with minimal support until $0.20126 and $0.19298.

As of now, Dogecoin is trading at $0.22, reflecting a 1.72% increase over the last 24 hours. This minor rebound suggests early signs of strength and may be working against the bearish scenario. While this uptick alone doesn’t guarantee a bullish trend shift, it indicates that buyers are trying to reestablish their influence. If this momentum continues into the new week, it could slowly open pathways for a more substantial upward movement for Dogecoin throughout the week.