Dogecoin Enters 'Full-On Bear Mode': How Low Can DOGE Go?

Dogecoin (DOGE) is showing clear signs of weakness after a strong two-day rally. At one point on Monday and Tuesday combined, DOGE had dropped over 21%. Following a notable increase since October 10th, in which the memecoin surged over 360%, Dogecoin hit $0.4834 on December 8th, the highest price since May 2021. However, strong selling pressure has emerged since then. How low can Dogecoin's price drop? The current technical backdrop suggests that DOGE is at a critical juncture. Cryptocurrency analyst Kevin (@Kev_Capital_TA) shared his views on X with the daily DOGE/USD chart, commenting: "Dogecoin is in a full breakdown mode. People with their triangles keep saying that DOGE is taking off, but as the chief analyst of Doge, I can determine that on the macro linear chart, Doge is actually at its biggest resistance point, which is the macro gold bag. I have warned everyone that this is not a place to feel too excited and a large retreat is on the table. You have nothing to fear." Please provide the text to be translated. Kevin previously emphasized the "golden pocket" - a region defined by the main Fibonacci retracement levels (.703 and .786), within the range of $0.47-$0.60 - as an important resistance zone. This area needs to be strongly overcome for DOGE to have a chance to reach a new all-time high. The recent decline shows that this resistance level has held firm. Adding to the pessimistic situation, the price of Dogecoin has recently broken below the upward trendline that supported the price increase in the past month. The failure of this trendline indicates a shift in market momentum. When a price chart breaks below such a trendline, it often signifies weakening buying pressure that had pushed the asset price higher. Traders may interpret this breakout as a signal to take profits, exit long positions, or consider short setups. Another technical indicator supporting the downside potential is the Relative Strength Index (RSI) on the daily chart. The RSI has been trending downwards over the past month, even as DOGE continues to reach higher levels. This classic bearish divergence—when price action and momentum indicators move in opposite directions—often precedes a reversal. Recent action below the support price trendline, along with the RSI breaking its own uptrend, confirms that momentum may have decisively shifted lower. For potential discount targets, Kevin's chart shows DOGE could drop to the $0.29-$0.26 range. Meanwhile, taking a closer look at the Fibonacci retracement levels on the daily chart provides a roadmap of potential support areas. Currently, the 0.5 Fibonacci retracement level at $0.39 seems to be a significant battleground. Successfully defending this level could prevent a downtrend and even set the stage for a recovery back on the broken trendline. However, closing below the Fib 0.5 threshold on a daily basis could open the door for deeper pullbacks. In such cases, DOGE could target the Fib 0.382 level at $0.31 and even the Fib 0.236 level at $0.21 as the next potential support levels if selling pressure accelerates. On lower time frames, the 4-hour EMA 200 is currently a key support level to watch.