Dogecoin faces a potential 35% price decline, trading near a critical support level after falling 42% over three weeks. Technical analysis reveals a bearish head and shoulders pattern, with a key breakdown level at $0.0874. Despite the downward pressure, on-chain data indicates accumulation by long-term holders as over $6.24 million flowed off exchanges.
The popular memecoin Dogecoin appears set to continue its downward trend amid geopolitical tensions and a bearish market structure. According to data from TradingView, DOGE has fallen over 42% in the past three weeks and was trading at $0.092.
On the daily chart, DOGE is forming a bearish head and shoulders pattern and hovering at the neckline of $0.0874. A daily close below this level could trigger a strong downside move of over 35%, potentially reaching $0.0559.
The technical indicator Average Directional Index has fallen to 22.75, below the key threshold of 25. This indicates DOGE has weak directional momentum and may not continue a strong bearish move.
Despite the bearish sentiment, long-term holders appear to be accumulating the token. The latest DOGE Spot Inflow/Outflow data revealed that over $6.24 million worth of the memecoin flowed out of exchanges in 24 hours.
Intraday trader sentiment remains aligned with the current bearish market trend. DOGE‘s exchange liquidation map shows traders have built $5.94 million in long positions and $14.17 million in short positions at key levels.
These leveraged positions suggest that intraday sentiment for DOGE is bearish, as sellers are significantly outperforming buyers. The trading volume also tanked by 32% to $1.07 billion, indicating fear among traders.
