DOGE Breaks Below Key Support, Suggesting End of Five-Month Bull Run

Dogecoin (DOGE), the largest memecoin by market capitalization, dipped below its short-term uptrend line on Monday, signaling the potential end of its recovery from the December lows and possibly marking the conclusion of a five-month rally.

Since the drop, DOGE’s price has fallen under the 38.2% Fibonacci retracement level from the rally that began in August, which reached highs of around 48 cents in December before retreating. A key principle in technical analysis suggests that for a trend to continue, the market must hold above this critical level. If it fails to do so, it is generally seen as an indication that the trend has ended.

Bearish signals are further confirmed by the Moving Average Convergence Divergence (MACD) histogram, which is showing deeper negative bars beneath the zero line, highlighting the strengthening of selling pressure. Both the five-day and 10-day simple moving averages are trending lower, reinforcing the bearish outlook.

Support levels are now expected at approximately 26 cents, the low hit on December 20, followed by 23.4 cents, which represents the 61.8% retracement of the August to December rally. For the bearish trend to be reversed, DOGE would need to reclaim the uptrend line from December lows.