The world’s largest meme coin is on a slippery slope after Bitcoin’s correction extended into another week. As a result, Dogecoin resumed its southbound movement on the chart and approached an important support region. Should its only shot at a rebound fail at $0.120, DOGE was expected to cough up some unpleasant losses this week.
Dogecoin 4-hour time frame
Dogecoin’s bullish rebound yesterday was cut short at 23.6% Fibonacci level as sellers prepared to inflict another round of corrections. As a result, DOGE was back within a bearish bias and traded at a 7% discount compared to yesterday’s close. Losses observed last week have now completely negated DOGE’s 57% climb between 10th and 14th January right after Elon Musk opened Dogecoin payment for Tesla merch.
Going forward, DOGE was expected to weaken further towards $0.125-$0.12 as the broader market continues to tumble. If a double bottom setup at $0.120 fails to lift DOGE from the doldrums, losses would likely extend to $0.1054. From there, the next defense was available only at $0.885. Overall, the move from DOGE’s press time level to $0.885 would highlight an additional 26% sell-off.
Indicators
The Average Directional Index was well above 25 and indicated high market volatility. While high volatility in itself is neither bullish nor bearish, it does generate large price swings for the commanding side. Considering that sellers were dominant in DOGE’s market, losses were expected to amplify over the coming sessions.
Meanwhile, the Awesome Oscillator flashed two red bars as soon as DOGE touched the 23.6% Fibonacci Retracement level. However, there was a slight chance of a bullish twin peak if DOGE holds above $0.120. The setup would generate a buy signal and alleviate some selling pressure.
Conclusion
Market participants have often mulled whether Dogecoin can touch the $1-valuation. Well, for now, DOGE to $0.1 is more likely and traders must brace for further losses if the price slips below $0.120.