Dogecoin Price Drops 8%: $0.18 Support Critical as Bears Take Control

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• DOGE drops 8%, testing $0.18 support.
  
• Bears dominate spot trading; Ichimoku cloud resistance critical.
  
• $0.07 remains unlikely unless broader market weakens.

Dogecoin (DOGE) has witnessed a sharp decline, falling nearly 8% in the last 24 hours as bearish sentiment grips the memecoin market. Once reaching highs near $0.30, DOGE now faces a critical juncture that could determine its short-term trajectory.

Key Support Levels: $0.18 and $0.07

According to Dogecoin’s UTXO Realized Price Distribution, the $0.18 mark serves as a pivotal support level. A sustained drop below this threshold could push the memecoin toward the $0.07 zone, historically the last major accumulation point where approximately 28.28 billion DOGE tokens, or 18% of supply, were moved. While this lower zone may act as a potential buy area, the current trend leans bearish, leaving traders cautious about further declines.

Resistance and Chart Signals

DOGE’s charts show mounting sell pressure, with prices breaking below the Ichimoku cloud on the 4-hour timeframe. Short-term targets suggest $0.1688 as the next possible floor. For bullish momentum to return, Dogecoin must reclaim the Ichimoku cloud resistance. Without it, bears may continue to dominate, pushing DOGE closer to last year’s levels around $0.15, a starting point of its previous rally toward $0.50.

Also Read: Dogecoin’s (DOGE) November Pattern Fuels Altseason Hopes

Market Sentiment: Bears Still in Control

CryptoQuant and Market Prophit data indicate that spot traders continue to sell DOGE, while the sentiment gauge shows both retail and smart money leaning bearish. Derivative traders, however, are starting to open long positions, suggesting some confidence that the $0.07 scenario may be too extreme under current conditions.

While Dogecoin faces significant bearish pressure, structural support and trader positioning indicate a hard floor above $0.07. A market-wide recovery or a breach above Ichimoku cloud resistance could restore bullish momentum, giving DOGE a chance to regain lost ground. For now, the memecoin remains in a tense wait-and-watch phase for traders.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.