Dogecoin is currently showing signs of selling pressure after shedding much of the bullish momentum it had gathered in late April and early May. Technical analysis of the Dogecoin price shows that the meme cryptocurrency is precariously hovering just above a key support level that puts it one step away from a downtrend.
Crypto analyst RLinda noted this level, set at $0.214, on the TradingView platform, labeling it a retest of the panic zone.
Panic Zone Under Retest Due To Dogecoin Correction
According to RLinda’s analysis, Dogecoin’s distribution phase between May 9 and 11 ended in the $0.2600 range, eventually marking the end of its latest bullish impulse. During this distribution phase, Dogecoin squandered all the potential it had accumulated in late April and early May.
From that point, the price has been falling steadily, entering what the analyst describes as the correction or dump phase. This has caused the meme coin to test the 0.214 level, the current panic zone. A confirmed breakdown below this panic zone, particularly beneath the 0.2135 support line, would not only liquidate long positions but also likely intensify selling pressure, eventually leading to what could become an uncontrolled price decline.
Interestingly, this correction price action has been characterized by lower highs, leading to the formation of a triangle pattern that’s visible on the 2-hour timeframe. RLinda warned that if the triangle’s base is broken, this structural failure could reinforce bearish sentiment. This would open the door to downside targets closer to $0.20 and possibly even $0.19.
Dogecoin Resistance And Support Levels To Watch
The immediate resistance lies at $0.222 and $0.2307, representing key zones Dogecoin must reclaim to negate the current bearish setup. A move above these points, especially if the price consolidates above $0.23, will invalidate the bearish breakdown structure and could renew bullish sentiment. However, RLinda made it clear that such a scenario is only worth considering after a clear confirmation, as current momentum still favors sellers.
On the other hand, support levels of $0.2145 and $0.2135 are currently the final shields holding back further declines. A close below $0.2135 would confirm the continuation of the downtrend and push the Dogecoin price into a lower consolidation zone, with limited immediate support until $0.20126 and $0.19298.
At the time of writing, Dogecoin is trading at $0.22, up 1.72% over the past 24 hours. This slight recovery hints at early signs of strength and may already be undermining the bearish setup. Although this slight recovery is not enough on its own to confirm a bullish reversal, it does show that buyers are attempting to regain some control. If this momentum can be sustained into the new week, it could gradually pave the way for a more sustained move higher for Dogecoin during the week.
Featured image from Mashable, chart from TradingView
