Selling Pressure Mounts as DOGE Faces Prolonged Correction Risk

 Dogecoin (DOGE), the largest meme cryptocurrency, has experienced a notable 2.07% drop in its price

Dogecoin (CRYPTO: DOGE) is trading lower Tuesday morning as the meme cryptocurrency continues to correct from recent highs. The U.S. and China trade tensions appear to be keeping investors on edge.

What Happened: Dogecoin is down 2.07% in the last 24 hours and now trades at $0.155. The cryptocurrency is down 8.87% over the last 48 hours as it continues to be affected by global macroeconomic news.

Dogecoin fell from a 48-hour high of $0.169 to a low of $0.155. The new lower high on the daily chart keeps the technical outlook bearish and could have many investors continuing to sell any rallies.

If the selling pressure continues, Dogecoin could be setting up for a deeper correction. The next key support level comes at $0.15.

Trade tensions between the U.S. and China appear to be keeping investors uneasy and could be putting further downward pressure on Dogecoin.

Dogecoin is down 66% from its all-time high of $0.686, which was reached in October 2021. Some analysts believe Dogecoin could fall as low as $0.085.

Related Link: 5 Things To Know About Dogecoin As It Hits New Lows

Why It Matters: According to data from Santiment, wealthy investors have been massively accumulating Dogecoin.

The popular analytics firm said Tuesday morning that high-net-worth investors, also known as whales, had purchased over 800 million Dogecoin in the last 48 hours.

“The world's richest investors are making their presence known in crypto once again as they've bought 800+ million DOGECOIN in the last 48 hours. This comes during a 1.5% market сторожениеliment,

Dogecoin is known for its strong community and meme status, which has helped to drive interest in the cryptocurrency.

Dogecoin is also the largest cryptocurrency other than Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

The cryptocurrency is up 149% year-to-date and remains a favorite among retail investors.

On the daily chart, Dogecoin is consolidating in a falling channel pattern, which is typically a bearish formation. The recent pullback from the upper boundary of the channel signals a bearish reversal and more downside pressure could come if global tensions continue.

If the tide shifts in favor of buyers, a breakout of the channel’s resistance could signal a trend reversal for Dogecoin.

A breakout of the channel, which is now around $0.23, could lead to a 45% rally in the cryptocurrency.

The next key resistance level comes at $0.23, which could lead to a 45% surge in the cryptocurrency.

Dogecoin is currently trading at $0.155 with a market capitalization of $23 billion.