Is Dogecoin (DOGE) 6% Drop a Sign of Further Decline?

• Dogecoin trades at $0.3168 with a 6% daily drop and a $46.68B market cap.
• DOGE is testing critical support at $0.31 and a breach could lead to a drop to $0.28.

Dogecoin (DOGE) plunged by 6% and is currently trading at $0.3168. The meme cryptocurrency holds a market cap of $46.68 billion, accounting for a 4.37% decrease in the past 24 hours. Trading volume declined by 27.13%, reaching $2.48 billion, reflecting reduced market activity. The volume-to-market-cap ratio also fell, now standing at 5.35%.

DOGEs circulating supply matches its total supply at 147.36 billion tokens, with no maximum cap. Despite its recent decline, the coin remains in the top seven cryptocurrencies by market cap.

Technical Analysis Shows Weakening Momentum for DOGE

Dogecoin is testing a critical support level at $0.31. If breached, the price could fall toward the next support at $0.28. Resistance lies at $0.34, and breaking this could push the price toward $0.37 in the short term.

The Relative Strength Index (RSI) stands at 37.96, indicating oversold conditions. However, the RSI average of 42.93 shows DOGE struggling to gain momentum. Both values suggest weak buying pressure.

The moving averages (MAs) paint a bearish outlook. The 9-day MA is $0.32637, while the 21-day MA is $0.37758. The downward MA crossover signals potential further downside.

Current price action reflects bearish sentiment, with no immediate recovery in sight. For a reversal, DOGE needs strong buying momentum to break through resistance levels. If buyers fail to step in, the token could remain under selling pressure.

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