Dogecoin’s rally may have just hit a wall. The largest memecoin by market cap has slipped below a crucial uptrend line, a move that could spell the end of its five-month surge, according to CoinDesk. The price of DOGE had been climbing since August, reaching highs of around 48 cents in December. But now, it has broken through a key Fibonacci retracement level, a warning sign for traders watching for trend reversals.
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DOGE’s Technical Indicators Confirm Bearish Momentum
It’s not just the price action flashing red. The moving average convergence divergence (MACD) histogram is printing deeper bars below the zero line, a sign of growing bearish strength. Meanwhile, the five- and 10-day simple moving averages are trending downward, reinforcing the negative outlook. For DOGE to regain its bullish structure, it would need to climb back above the December uptrend line, which currently looks like a tough battle.
Key Support Levels to Watch
DOGE is now testing support around 26 cents—the low it printed on December 20. If that fails, the next critical level sits at 23.4 cents, which represents the 61.8% Fibonacci retracement of the August-December rally. A break below that could trigger an even steeper drop, wiping out months of gains.
At the time of writing, DOGE is sitting at $0.3281.
