Dogecoin's price has been experiencing a lot of fluctuations in recent days

Dogecoin price has fluctuated significantly recently, and technical indicators show it may face a significant pullback.

Dogecoin prices have fluctuated sharply in the past few days, and technical indicators suggest a sharp pullback may occur in the coming weeks. Price hit a high of $0.171 on Saturday, then fell 22%.

Since 2018, Dogecoin prices have been operating in a long-term rising parallel channel, and have recently fallen below this channel, marking a major technological change in the market structure. Technical analysts believe that breaking below key trend line support indicates an increased bearish momentum, which coincides with the decline at $0.16395 (0.786 Fibonacci retracement).

The next major support level is at $0.06167 (0.618 Fibonacci retracement), which coincides with the previous consolidation area and is crucial for traders.

During the market volatility, more than $300 million of Dogecoin (approximately $41.7 million) was transferred to the Binance Exchange. Such large-scale transfers usually occur before selling pressure or major position adjustments.

However, cryptocurrency trader Tardigrade pointed out signs of bullish divergence in the Dogecoin daily chart. While prices fall, the relative strength indicator (RSI) rebounds and forms higher lows, suggesting that selling pressure may weaken and prices may reverse.

Dogecoin is currently testing the $0.135 price point, which used to be both support and resistance. This price remains stable during the entire consolidation stage in early 2023, and the current price trend may form a reversal pattern.

Some analysts believe that if Dogecoin can hold the support level, the price may rebound and eventually reach a higher target. “If the price rebounds from this level, we are likely to see a new bull trend begin.” But they also warn that if the support level falls, the price may fall further, testing $0.12 or even $0.10.

On-chain metrics outline Dogecoin's short-term prospects. Since January, the number of daily active addresses has continued to decline after a sharp rise in November.

Dogecoin's social media participation is also declining, and the trend of social advantage continues to decline, with the number of social networking hitting a new low in April. This suggests that unless the price trend reverses, attention and capital flows will continue to flow out of the market.

After a week of bull market efforts, the capital rate has turned negative, highlighting the seller's advantage in the derivatives market.

Technically, the Dogecoin daily chart shows that the selling pressure has continued since December, with the balanced indicators slow but steady decline. The RSI has been below the neutral 50 level since mid-January, indicating that the bearish trend continues.

Starting from October 2024, the support levels of $0.131 and $0.102 will be the next target. The former has been tested recently and may trigger a rebound in the $0.154 to $0.164 range.

Although market analysts expect a 15% short-term rebound, the overall trend remains strong in the short term.

Some market participants recommend paying attention to the rebound at the $0.18 price, which may be a signal of a false breakthrough or a short-term rebound. If Dogecoin can break through and stand firm above that price, further resistance levels will be set at $0.25 and $0.30.

However, if the price fails to break through the key prices of $0.18 and $0.20, the rebound attempt may continue to weaken.

The latest clearing data shows that all exchanges cleared positions worth US$37.15 million, of which long positions cleared US$31.87 million (85.78%).

Dogecoin's price fell 22.6% in 24 hours after Bitcoin triggered a panic selling in global markets due to the escalation of the trade war, and its value fell 10.68%.

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