Dogecoin Risks 35% Drop After Losing $0.095 Support
Dogecoin (DOGE) broke a key $0.095 support level that had held since February 2024, falling 2.18% to $0.09083 amid broader market bearishness. Trading volume rose 11% to $845 million despite the decline. Technical indicators show strong downward momentum: the Average Directional Index (ADX) is 51.33, well above the 25 threshold. Analysts warn that failure to reclaim $0.095 could precipitate a 35% decline, with the next minor support at $0.0883 and a major support zone at $0.05710. Futures data point to elevated bearish positioning—shorts total about $14.46 million versus $8.26 million in longs—clustered around $0.0888 (downside) and $0.0948 (upside), raising the risk of liquidation cascades and rapid moves. Some analysts counter that DOGE may be testing a long-term ascending trendline (since 2017) and that current levels could present a buying opportunity if historical support holds. Key takeaways for traders: DOGE has broken a near-year-long support, momentum indicators favor further downside, leveraged short concentration increases volatility risk, and a reclaim of $0.095 would be needed to shift the technical outlook back toward neutral or bullish.
Bearish
The article documents a clear technical breakdown: DOGE lost a year-old $0.095 support and shows strong downward momentum (ADX 51.33). Increased volume during the decline and a significantly larger short exposure ($14.46M shorts vs $8.26M longs) point to prevailing bearish sentiment and elevated liquidation risk. The next supports ($0.0883 and $0.05710) are materially lower, so failure to reclaim $0.095 makes further downside likely. Historically, breakdowns of long-standing supports often lead to accelerated moves as stop-losses and leveraged positions unwind. Offsetting this, some analysts cite a long-term ascending trendline since 2017 and argue current levels could be a buying opportunity; however, until price action reclaims $0.095 and short concentration diminishes, the technical and positioning signals favor additional downside in the near term. In the short term, expect elevated volatility and potential rapid declines if $0.0883 fails; in the medium-to-long term, recovery would require sustained buying and a reclaim of the broken support, otherwise structural trend change could persist.