Dogecoin Dips Below Critical Support — Is This a False Signal or Bigger Drop Ahead?

Dogecoin, one of the most prominent open-source peer-to-peer cryptocurrencies, is crashing in the market, dipping below $0.15, its critical support level.  According to DOGE’s latest market analysis, technical indicators like MACD and RSI signal an extreme bearish outlook. DOGE recently dropped around 8-9% and the ongoing breakdown came with a high volume. The recent market analytics show that around 1.56 billion tokens were exchanged hands, indicating a real sell-off rather than a minor fluctuation. 

After the bearish breakout, DOGE’s potential support lies at around $0.1370–$0.1383; experts comment that if the digital asset falls below this particular point, DOGE would be subject to further downside below $0.10.  Expert analyst Erick Crypto posted on X that DOGE was reaching a decisive moment and that the price was tapping the bottom of a falling wedge on the 1D chart, which was one of the strongest bullish reversal patterns. He mentioned that a breakout toward $0.16–$0.19 became possible if volume picked up and confirmation hit. 

The expert analysts and crypto enthusiasts believe that the current sentiment is attributed to factors like the total weakening of the cryptocurrency market, technical failures, and negative sentiment in prominent cryptocurrencies like BTC, ETH, SOL, XRP, etc. On December 2, DOGE experienced an 854M DOGE sell volume, before it hit $0.1357. DOGE currently trades at $0.1357, with a total market cap of $20.63 billion and daily trading volume of $1.28 billion.  

Dogecoin’s Current Downturn is A False Signal or the Beginning of An Upcoming Big Drop

Analysts observe the market closely, and they believe that DOGE’s current downturn is more than a false signal and could be the beginning of a bigger price drop unless there is substantial recovery buying. According to them, Dogecoon is facing a strong sell-off after a global sell-off in the global cryptocurrency market; they also believe the crypto market could witness DOGE’s massive downside momentum towards the October 10 low. Dogecoin is struggling and facing persistent selling pressure, and failing to recapture key trend levels. Crypto experts argue that the persistent selling pressure indicates a higher risk of further decline rather than a short-term bearish momentum.     

Analyst Kate Wilson posted on a CoinMarketCap community post that for any relief bounce, bulls needed to reclaim $0.1420 first. She stated that stronger resistance sat at $0.1465 and $0.1490, and that a close above $0.1490 could open the door to $0.1520–$0.1550. However, she cautioned that if buyers failed again, one should watch $0.1370, $0.1350, and $0.1330, and that a breakdown below $0.1330 might send DOGE toward $0.1250.

Despite strong bearish momentum and heavy selling pressure, some experts believe this downturn may be temporary. Historically, DOGE has often rebounded toward the $0.175–$0.18 zone following a price drop. According to them, a consolidation or a rebound after a dip and oversold conditions is still on the line. They believe that DOGE can recover well and end a potential big drop, if it reclaims the $0.150–$0.155 zone and picks up the volume again. However, there is no clear bullish divergence yet, and the risk of a big drop remains until DOGE claims a higher support and a strong bullish pattern in the cryptocurrency market.