Dogecoin (DOGE) Might Drop 20% as Bears Dominate

Briefly –

DOGE sees extended plunges as bears appear stronger than bulls.
The leading meme asset might endure a 20% plunge to $0.16.
Moreover, Traders Index (TRIN) indicates that sellers dominate the market.

Dogecoin seems ready for another plummets amid fading buying activities. The asset’s chart pattern indicates that the probability of DOGE sustaining losses is almost a whole. For now, bears appear to target the $0.16 lows.

Dogecoin Bulls Retreat

Dogecoin has already lost about 20% since 18 September. Nevertheless, the alt’s downtrends aren’t over, even as buyers attempt to take the meme token higher. Keep in mind that the overall market trades in a bloodbath at the moment. The recent market crash seems to weigh on Dogecoin as buying activities fade.

The daily price chart suggests that DOGE formed a bearish technical shape, suggesting Dogecoin’s pessimistic attitude. Measuring the chart pattern’s flagpole shows the high possibilities of the meme asset crashing 33% from a lower breakout of the flag’s bottom boundary.

Though bears took over the Dogecoin market, the 78.6% FIB retracement zone at $0.20, fortunately, supported the token. This level sits close to the support by the MRI (Momentum Reversal Indicator). Moreover, additional support might appear at the 23 June and 15 July lows at $0.18 before the asset hits the bearish aim near $0.16.

Meanwhile, TRIN adds credence to DOGE’s pessimistic attitude. The Arms Index (TRIN) measures the total market sentiment. If it displays a figure beyond 1.0, it confirms a bearish gesture, indicating high selling pressure than buying pressure.

However, if bulls emerge to try a price recovery, the themed token will encounter a resistance area at $0.21 before aiming to test the 61.8% IB retracement at $0.23. Increased buy orders might catalyze Dogecoin to aim the technical pattern’s dropping trend-line at $0.24. This level concurs with the 100-d SMA. Magnified buying volume at this point will take DOGE to the 200-day Simple Moving Average at $0.25.

Meanwhile, bulls have to step up with an enormous commitment for the asset to reverse its underperformances in the short term. That is because the total cryptocurrency market sees a continuous plunge due to negative sentiment after China’s Evergrande calamity.