A Colossal Plunge Below Key Support Means Further Decline In Doge Token

Dogecoin (DOGE/USD) has been uncharacteristically quiet over the last two days, as the meme consolidates below critical support in the $0.1800 level following last week’s flash meltdown, which witnessed widespread selling throughout cryptocurrency markets.

Earlier the Doge fell from above $0.2000 to a position around $0.1200s on Saturday. This dip takes its market capitalization from approximately $28B to poor numbers, equivalent to $18B at one point. However, this poor performance has seen a further decline in trade, equivalent to a $0.1600-$0.1800 median. If these poor numbers are nothing to go by, a further decline in the market saw the Doge doing $0.1700, then dropping sharply to$0.1800s.

While that represents a remarkable rebound of more than 40% from Saturday’s poor performance, the digital asset is a long way from rebounding. At the moment, it has registered 15% recovery signs for the last 30 days. This has thrown FUD into the camps of Doge investors. The digital asset just in May reached a record high of $0.7400 in May. Since then, it has lost 75% of its value.

Long-term Holders Can Sleep With An Eye Closed

The meme coin, trading above 4000% continues to give long-term HOLDers reprieve. However, for future indicators for both base and quoted currency, the Doge/USD is not encouraging, and there is a risk that additional depreciation might create a downtrend. This is because new investors are hedging their bets.

Tough Times For Short-term Speculators

After analyzing the currency pair with four-hour candlesticks, it appears the digital assets are moving towards a temporary consolidation. Doge is being traded at $0.16000. There is a possibility of high gains pouring in later on, although it will be delayed with further resistance – the type experienced in November. Following the historical data, the present level correlates with mid-August rankings and late September performance.

Technical Analysis Predicts Further Downtrend

Using the Relative Strength Index (RSI) indicators over 14 periods predicted a rebound. And of course, a consolidation in USD when the paired currency fell on Saturday. While that was true, indications mean that the coin was neither oversold nor rushed by “frenzy” whales looking to provide liquidity, which is a strange reality.

EMA range shows covering 12 days shows that the meme coin passed the 26-period exponential moving average. The first time it would break that barrier was in the first few days of December. With this breakthrough, speculators took advantage of the rebound to trade the currency pair. However, the last two days have shown a drop in momentum from MACD analysis.

Long-term Value Unpredictable

Doge will have to overcome considerable technical obstacles. One reason is to keep its bearish momentum that stretched throughout October. If not, by breaking the $0.1900 critical resistance level, it is likely it experiences a further decline similar to November. The other reason is that this plunge will become the new resistance level as the meme coin rallies to $0.2000.

Consolidation may turn into a long wait as the support or resistance level, the 21-day moving average index, has not broken the $0.2060 barrier.

If the Doge bulls are unable to push the cryptocurrency above these critical levels, it is fair for technical analysts to believe that the token will continue similarly. This means Doge continues to struggle at the $0.1600 level. The same level was experienced this week, and from historical data, the same happened in April, June, and July. 

At this critical moment, a further plunge like that experienced over the weekend means the Doge hangs at $0.1245. And of course, the plunge will be exacerbated by sentiments, leading to further lows. If the downturn continues, Doge will lose 50% of its current levels