The cryptocurrency world never runs out of gossip! This time, it's Dogecoin's turn to 'drop the ball'—the exchange rate against the US dollar has once again fallen below the 0.1250 USD range, causing a bit of panic. Following the rhythm of Bitcoin and Ethereum, it has entered a new round of decline mode, with previous support levels easily broken, and now it's busy 'digesting losses'. Just how severe has this drop in Dogecoin been, and will there be any chance for recovery?

It's a mess! Dogecoin has repeatedly lost key support levels.

You might not believe it, but ever since Dogecoin's closing price fell below the important threshold of 0.1300 USD, it's like a 'downward switch' has been turned on. First, it broke below 0.1280 USD, and then it couldn't hold the support level of 0.1250 USD either, plummeting all the way down to 0.1198 USD before barely stabilizing, marking a recent low.

The current situation is that Dogecoin is stuck in an awkward position—'playing dead' below the 23.6% Fibonacci retracement level from the peak of $0.1305 to the low of $0.1198. Furthermore, and more critically, it not only broke below $0.1280 but also lost the 100-hour simple moving average, with short-term bearish signals fully displayed.

Want a rebound? First, get through these 'ghost gates'.

Some friends might ask: what if there’s a rebound? Don't rush, the road to a rebound is full of resistance, it's not that easy.

First of all, the most direct resistance is around $0.1235; if you want to push up, the first step is to get past here. If you can manage to sneak past, the next major hurdle is $0.1280—this position just happens to be the 76.4% Fibonacci retracement level from the peak of $0.1305 to the low of $0.1198, the pressure is self-evident.

Looking further up, $0.1300 is a tough nut to crack, not only is it a key resistance level, but there is also a bearish trend line pressing down on it on the hourly chart. If it can hold the closing price above $0.1300, that would signify a bit of a turnaround, potentially pushing towards $0.1350, or even touching $0.1372. As for the ultimate goal for bulls at $0.1400, it seems too far away for now; let's clear the immediate hurdles first.

Will Dogecoin continue to lose?

This should be the question everyone is most concerned about. The answer is: it's highly likely to remain under pressure, just see if $0.1300 can be held.

If it still can't break through the resistance at $0.1300, the downtrend may continue. The next support level is $0.1200, and below that is $0.1195. If these two positions can't hold either, we will have to look at the final 'lifeline' at $0.1150.

Once $0.1150 breaks down, the situation will get a bit dire, and it may slide towards $0.1050, or even possibly drop to the $0.10 level. So friends with chips in hand should keep a close eye on these key positions.

Technical indicators update: Bears are still exerting force

Finally, let me give you a technical 'calming pill' (which might also be a 'heart-wrenching pill'), simple and easy to understand, you will get it at a glance:

  • Hourly MACD: It has already galloped into the bearish zone, and the bearish strength is still increasing;

  • Hourly RSI (Relative Strength Index): Just fell below the critical level of 50, indicating that the short-term is still dominated by bears;

  • Main support levels: $0.1280 and $0.1250 (already lost, may turn into resistance later);

  • Main resistance levels: $0.1340 and $0.1350.

Overall, Dogecoin is currently under the pressure of 'continuous decline', making rebounds quite challenging. Whether it rebounds from the bottom or continues to explore the bottom, it all hinges on the two life-and-death lines at $0.1300 and $0.1150. Everyone should be cautious when bottom fishing and not blindly follow the trend, after all, the crypto market is highly volatile, and safety comes first!