DOGE Dips Below Uptrend Line, Pointing to a Possible End to Its Five-Month Rally.

DOGE Falls Below Critical Support, Pointing to Possible End of Five-Month Bullish Trend

Dogecoin (DOGE), the leading memecoin by market cap, slipped below its short-term uptrend line on Monday, signaling a potential end to its recovery from the December lows and possibly the conclusion of a five-month bullish run.

Since the drop, DOGE’s price has dipped beneath the 38.2% Fibonacci retracement level from the rally that started in August, which reached a peak of around 48 cents in December before retreating. A foundational principle in technical analysis dictates that for a trend to persist, the market must hold above this critical level. Falling below it typically suggests the trend has reversed.

Additional bearish signals are visible in the Moving Average Convergence Divergence (MACD) histogram, which is printing deeper negative bars below the zero line, indicating increasing selling pressure. Moreover, the five-day and 10-day simple moving averages are trending downward, further supporting the bearish outlook.

Key support levels are seen around 26 cents, 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 invalidated, DOGE would need to reclaim the uptrend line that formed after the December lows.