- Dogecoin price appears to be losing ground as it plunges 17% over the past two days.
- Investors can expect this decline to extend down to $0.15 if weekly support at $0.163 fails.
- A 4 hour candle close above $0.215 will invalidate the bearish thesis for DOGE.
Dogecoin price has had many bullish rally opportunities in a row over the past two months. However, DOGE seems to waste them. The recent surge in buying pressure appears to be waning and market participants can expect DOGE to continue its tumble.
Dogecoin price appears to be establishing a base
Dogecoin price surged around 61% between Jan 10-14 to hit a swing high at $0.216. Since November 30, 2021, DOGE has retested this barrier three times, creating the triple top setup.
This technical formation is a top reversal pattern and predicts the end of an uptrend and the beginning of a downtrend. The last two times DOGE failed to climb higher resulted in further corrections that surpassed 25%.
So far, DOGE is down 17% and it is currently trading below the weekly resistance barrier at $0.194. The increased selling pressure is likely to push the Dogecoin price to the weekly support level of $0.163. This is where the meme coin could try to set a base and attempt an uptrend, but that is unlikely.
Therefore, investors can expect Dogecoin price to revisit the $0.15 level, where DOGE has been hovering for most of 2022. In some cases, the $0.128 support floor could be retested before a meaningful uptrend begins.
DOGE/USDT 4 hour chart
On the other hand, if Dogecoin price clears the immediate hurdle at $0.194 and produces a four-hour candle close above $0.215, it will create a higher high. This development will skew the odds in favor of the bulls and invalidate the bullish thesis.