Dogecoin (DOGE) Price Analysis: Will the Bears Continue to Dominate the Market?

Dogecoin's [DOGE] reversal from the $0.22 resistance level in May this year set the stage for the bears to dominate the market.

Dogecoin [DOGE] bears took over the market after the memecoin faced rejection at the $0.22 resistance level in May this year. They brought in a series of red candles as DOGE fell below its 20-day and 50-day EMA during this bear run.

As predicted in our previous article, DOGE succumbed further to the bear pressure and fell below the critical $0.12 support level. Any potential reversal from the immediate support zone at $0.096-0.01 could stop the bleeding as bulls try to make a comeback.

At the time of writing, DOGE was trading at around $0.101.

Dogecoin bears continue to pressurize

The bear pressure has been quite strong ever since the price action faced rejection at the $0.22 resistance mark. The memecoin lost over 54% of its value over the last three months of this bear run.

In the course of this downtrend, the memecoin formed a classic descending triangle pattern on the daily chart. After testing the $0.129 level for over three months, the bears finally triggered a series of red candles below that baseline and confirmed a bearish pattern breakout.

The bulls went on to retest this level shortly after the breakout, but the 20 EMA stalled this rally as the altcoin continued its downtrend and approached the crucial $0.01-$0.096 support zone at press time.

Moving forward, this zone is critical for any immediate bleeding to be stopped. In fact, an analysis of the visible range volume profile showed that the prevailing price was at the edge of a relatively high liquidity area. This would mean that the bears are likely to face resistance from the bulls for any further pulldowns.

Thus, any reversal from the current support zone could see the bulls retest the $0.11-$0.12 range. If the price manages to rally above the 20 EMA, it will likely enter a low-volatility zone.

On the other hand, any decline below the immediate support zone could see the memecoin be exposed to an extended decline towards the $0.08 zone.

The Relative Strength Index (RSI) was still in the oversold territory at press time. any potential reversal from the press time position will confirm the bullish reversal bias.

OI declined

According to Coinglass data, DOGE’s open interest declined by nearly 12% over the past 24 hours. However, the price action fell by around 4% during this time, which suggested a lack of conviction or uncertainty among traders.

Such a scenario usually points to either a potential reversal or consolidation phase— One where the market might stabilize before making the next move.

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