Dogecoin Price Hints Major Breakdown Amid Double Top Pattern

During Wednesday's trading session, the Dogecoin price experienced a 7.5% drop to reach the trading value of $0.26.

Dogecoin encountered selling pressure on Wednesday as the broader market pulled back amid uncertainty over U.S. tariff policy, leading to a 7.5% drop in its price to $0.26. However, a bearish double-top pattern formation suggests further correction could be on the horizon for DOGE holders.

According to CoinGecko, DOGE's market capitalization stands at $39.3 billion, while the 42-hour trading volume is $4.14 billion.

Dogecoin Price Hints Major Breakdown Amid Double Top Pattern

Over the last three weeks, the Dogecoin price has experienced an aggressive downturn, falling from $0.43 to $0.26, marking a 40% loss. Analyzing the daily chart reveals this reversal as the second downturn from the $0.48 resistance, indicating the formation of a double-top pattern.

This chart setup is typically observed at major market tops and signifies strong overhead supply with an ‘M’ shaped reversal. At present, the DOGE price trades at $0.26, hinting at a breakdown below the pattern's neckline support of $0.262.

If this support is successfully flipped into potential resistance, Dogecoin's correction will also be pushed below the 50% Fibonacci retracement level, further intensifying the bearish momentum.

The post-breakdown fall could drive the asset down by 30%, hitting $0.17, followed by a prolonged downturn to $0.08.

Conversely, if buyers manage to sustain above $0.25, this dog-themed memecoin could shift its trajectory sideways to recuperate the bullish momentum.

Technical Indicator:

Exponential Moving Average: The Dogecoin price correction extending below the daily EMAs (20, 50, and 100) highlights the seller's influence rising over this asset. A potential bearish crossover between the 20 and 100 EMA could further accelerate the bearish momentum.

Relative Strength Index: The daily RSI slope plunged to 33%, indicating the bear's dominance over price movement.