Dogecoin is about to fall by 21%, has the bearish downward trend been confirmed?

Although the price recently fell by 16%, Dogecoin (DOGE), the largest meme coin in the world, is still on track to continue its decline. The reason behind this speculation is the formation of a bearish price action pattern on the daily timeframe amid the ongoing bearish market sentiment. Technical analysis of Dogecoin (DOGE) and upcoming levels. According to CoinPedia’s technical analysis, DOGE appears to be bearish as it has formed a textbook head and shoulders price action pattern on the daily timeframe. Additionally, the price of this meme coin is on the verge of a major collapse.

Based on the recent price momentum and historical patterns, if this meme coin breaks the neckline of the bearish pattern and closes the daily candle below the $0.16 level, the price could fall 21% to reach the support level of $0.13 in the future. As of now, DOGE is trading below the 200 (EMA) exponential moving average on both the daily and four-hour time frames. This indicator shows that the meme coin is in a strong bearish trend and is on a downward trajectory. However, traders and investors often use this setup to sell off or short assets whenever its price shows any signs of an increase. Current price momentum At the time the press reported, DOGE was trading at around $0.168 and had recorded a bearish fall of 1% in the past 24 hours. Meanwhile, during the same period, its trading volume had decreased by 60%, indicating a drop in participation from traders and investors—likely due to bearish market sentiment. The DOGE outflow is worth 6 million dollars. However, in the context of this bearish outlook, investors seem to be accumulating tokens, potentially signaling a classic buy strategy when prices fall, according to the blockchain analytics company Coinglass.

Data on the inflows and outflows at spot exchanges shows that exchanges have witnessed an outflow of about 6.11 million DOGE in the past 24 hours. This significant outflow indicates a potential accumulation and could lead to increased buying pressure. However, while this massive outflow of capital could trigger a price increase, the prevailing bearish sentiment in the market may make it difficult to sustain such an upward trend. ⚠️IMPORTANT! If you like this topic, don’t forget: • Follow me @blogtienso for more interesting content! • Like, share, and leave a comment 💖 and don’t forget DYOR! #Write2Earn #Write&Earn $BTC