18% Drop Since May 10th Creates Critical Support Test
The post 18% Drop Since May 10th Creates Critical Support Test appeared on BitcoinEthereumNews.com.
TLDR DOGE has dropped over 18% since May 10th local high, now trading around $0.23 Price is consolidating between the 200-day EMA ($0.219) and 200-day SMA ($0.269) Analyst Ali Martinez suggests a possible retest of the $0.213 support level On-chain metrics show positive funding rates, indicating bullish sentiment Technical outlook points to potential 20% gains if support holds Dogecoin has entered a critical consolidation phase after experiencing a sharp rejection below the $0.26 resistance level last week. The popular meme coin has retraced some of its gains after an impressive rally that began in early April, dropping over 18% since reaching a local high on May 10th. The price action follows a strong breakout above $0.13 in April, which had resulted in a 100% surge within a month. However, recent market movements suggest this upward momentum may be stalling. Currently trading around $0.23, DOGE sits above its 200-day Exponential Moving Average (EMA) at $0.219, but remains below the 200-day Simple Moving Average (SMA) at $0.269. This zone has become a key battleground between bulls and bears. According to analyst Ali Martinez, the recent rejection has opened the possibility for DOGE to revisit the $0.213 level – a critical zone that previously served as both resistance and support during the April breakout. #Dogecoin $DOGE may want to revisit $0.213! pic.twitter.com/ruKqcXEqNP — Ali (@ali_charts) May 20, 2025 Technical Picture Shows Mixed Signals The daily chart for Dogecoin reveals a loss of momentum following the early May price action. Trading volume has notably declined since the breakout, suggesting waning trader interest in the current range. The tight-bodied candle structures on recent days indicate market indecision. If DOGE loses the $0.219-$0.220 support zone, the next logical support level sits at $0.213, aligning with analyst concerns of a potential retest. A breakdown below this area…
Filed under: News - @ May 21, 2025 11:27 am