DOGE Breaks Below Uptrend Line, Indicating Possible Conclusion to Five-Month Rally.

DOGE Breaks Key Support Levels, Raising Concerns Over End of Five-Month Rally

Dogecoin (DOGE), the top memecoin by market capitalization, experienced a significant drop on Monday, falling below its short-term uptrend line. This movement suggests a potential end to the recovery from December’s lows and possibly signals the conclusion of a five-month rally.

Following this drop, DOGE’s price slid beneath the 38.2% Fibonacci retracement level of the rally that started in August, which peaked near 48 cents in December before retreating. In technical analysis, a market is considered to be in a sustainable trend as long as it stays above this key level. A failure to hold above it typically indicates the trend has reversed.

Further signs of growing bearish momentum can be seen in the Moving Average Convergence Divergence (MACD) histogram, which shows deeper negative bars below the zero line. Additionally, both the five-day and 10-day simple moving averages are declining, indicating a bearish sentiment in the market.

Support levels are now located at 26 cents, which is the low reached on December 20, followed by 23.4 cents, representing the 61.8% Fibonacci retracement of the August-December rally. For the bearish outlook to be negated, DOGE would need to recover above the December low uptrend line.