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▲ Bitcoin (BTC), Dogecoin (DOGE), Cryptocurrency decline / ChatGPT generated image ©
After surging approximately 25% over the past week, Dogecoin (DOGE) fell 6.57% in a single day, dropping to $0.0930. The decline was primarily driven by a rotational shift of funds out of high-risk altcoins and short-term profit-taking, rather than specific negative news. The ability of the $0.0887 level to hold as support has emerged as a turning point for further correction.
According to cryptocurrency market data aggregator CoinMarketCap on September 23 (local time), Dogecoin traded at $0.0930, down 6.57% over the past 24 hours, marking a larger decline than Bitcoin's (BTC) 1.8% fall. During the same period, CoinMarketCap's Altcoin Season Index dropped by 8.16%. The media analyzed that funds exited altcoins as risk asset preference weakened, and Dogecoin, a highly volatile memecoin, experienced relatively greater pressure.
Profit-taking following the recent surge also exacerbated the decline. Dogecoin had risen approximately 25% in the week leading up to September 21, at one point testing the $0.10 resistance level. Subsequently, the price dropped below the 9-period and 21-period moving averages, and the Relative Strength Index (RSI) decreased from an overbought zone above 70 to 71.1, indicating a weakening short-term upward momentum. CoinMarketCap pointed out that reclaiming $0.10 could signal a resumption of bullish momentum.
In the short term, $0.0887, which is the 61.8% Fibonacci retracement level, serves as a critical support line. If this price is defended, Dogecoin is likely to consolidate within the $0.0887 to $0.10 range. Conversely, if $0.0887 breaks, there is a risk of further decline to $0.0842, the 78.6% Fibonacci retracement level. Price movement around $0.0887, along with trading volume, was identified as a key indicator for assessing the strength of selling pressure.
Looking ahead, October 14, the last trading day for the Bitwise Dogecoin ETF (BWOW), was presented as a variable. CoinMarketCap assessed the current Dogecoin weakness as a result of overall altcoin risk aversion and profit-taking from recent gains, rather than a problem with a specific project. Accordingly, while bearish pressure dominates the short-term trend, whether the $0.0887 support level can prevent further decline was analyzed as key to determining future direction.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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