Dogecoin (DOGE) has been under significant selling pressure recently, experiencing a steep 10% decline over the past 24 hours. The popular cryptocurrency coin has dropped below a critical support level of $0.22136, signaling that bearish sentiment is taking hold in the market. This price movement indicates that DOGE is likely to face further challenges as it continues to struggle against growing negative momentum.

Dogecoin’s Price Struggles Amid Bearish Sentiment

After hitting a high of $0.46766 in December 2024, Dogecoin began to show signs of weakness, particularly after it failed to break through the key resistance level of $0.48. This failure triggered a downward spiral as the price formed a series of lower lows, breaking beneath key support levels, including the 50-day and 200-day Exponential Moving Averages (EMA).

The continued decline suggests that the once-popular altcoin has fallen out of favor with investors, and the market’s negative sentiment is now dominating price action. The recent 10% drop in DOGE’s price is a direct result of the growing selling pressure, and the price is now at risk of heading further downward unless significant buying volume enters the market to reverse the trend.

Technical Indicators Signal Bearish Momentum

Dogecoin’s recent performance is being heavily influenced by bearish technical indicators. One of the key signals pointing to further declines is the Relative Strength Index (RSI), which currently sits at a low of 26.44. This value indicates that DOGE is in an oversold condition, and although oversold conditions sometimes lead to price rebounds, the RSI remains below the 14-day Simple Moving Average (SMA), signaling that the bears are in control.

Additionally, the Moving Average Convergence Divergence (MACD) has printed a “death crossover” and is firmly in the negative zone, further supporting the bearish outlook for Dogecoin. The MACD’s signal suggests that selling momentum remains strong and could persist until the market finds a more favorable catalyst for recovery.

As of now, DOGE is trading at $0.20494, with a market capitalization of $29.72 billion. The 24-hour trading volume has reached $2.7 billion, but this trading volume appears to be driven by speculative activity rather than sustained buying pressure. This suggests that even as trading activity picks up, investor interest in Dogecoin is currently limited, and a reversal of the downtrend may be difficult without substantial capital inflows.

Can Dogecoin Price Recover?

Despite the current downtrend, there are still possibilities for Dogecoin to recover if it can break through the 50-day EMA, which has become a crucial resistance level. If buyers can push the price above this level, it could signal the potential for a short-term rally or consolidation above the $0.22136 support. However, this remains a distant possibility at the moment, as the bears are still in control.

Investors should exercise caution and wait for confirmation of a breakout before committing new capital to the asset. If the price does not manage to reclaim key support levels, such as $0.18271 or $0.14690, DOGE could continue its downtrend toward lower levels. On the other hand, a push above $0.2596 could invalidate the bearish outlook and allow for a more sustainable recovery.

Conclusion

Dogecoin’s recent 10% drop highlights the growing selling pressure and bearish momentum that has taken hold of the market. The cryptocurrency is currently struggling to maintain its position, with key technical indicators signaling further downside potential. Although the community sentiment remains mostly bullish, the price action suggests that investors should remain cautious and wait for more favorable market conditions before making significant investments in DOGE.