Will Dogecoin Recover in December or Fall Further First?
The value of Dogecoin is once again facing downward pressure as it teeters around the critical $0.15 mark, a pivotal level that many traders believe will determine whether the famous meme-inspired cryptocurrency will recover heading into December or plunge further before any chance of a rebound. Amidst volatile movements across the crypto landscape, holders of DOGE are nervously awaiting the next developments.
The recent downturn reflects a challenging period for the entire cryptocurrency industry, characterized by Bitcoin slipping below the $90,000 mark. DOGE’s price action shows a consistent downward trend on the daily chart, with fluctuations and uncertainties persisting in the short term. Over the past week, Dogecoin has shed nearly 9% of its value, dropping to as low as $0.15. In the last 24 hours alone, the price ranged from $0.1533 to $0.1625, with a minor 1.67% decline bringing it down to approximately $0.1578.
Technical analyses indicate that Dogecoin is striving to stabilize above the crucial Fibonacci 0 level set at $0.15178, a level that has provided support multiple times this month. Despite this effort, the Relative Strength Index (RSI) hovering around 39 suggests a prevailing bearish sentiment in the market, leaving room for further declines as well as a potential recovery. The breach of the previous support at $0.1720 has exposed the $0.1650–$0.1600 range, with experts pointing out the weekly 200-day Exponential Moving Average (EMA) at approximately $0.16 as a critical barrier against deeper losses.
Amidst the prevailing downward trend, some positive signs are emerging. Changes in the net position of Dogecoin on exchanges have turned positive, traditionally indicative of early stages of accumulation. Furthermore, whales have accumulated over $8 million worth of DOGE in the last three days, with an additional $9 million entering long positions in futures across platforms like Binance and OKX. While there has been a slight increase in money flow indicators at the support level, implying a gradual return of buyers after the dip, net outflows from spot markets remain slightly negative, suggesting that confidence is on the rise but not fully restored.
Looking ahead to December, the fate of Dogecoin hangs on whether it can maintain the $0.15 mark. A successful defense could propel the price towards resistance levels at $0.1654, $0.1738, and potentially $0.1807. A decisive breakthrough above $0.20 would pave the way for a broader recovery in the month ahead. Conversely, a failure to hold $0.15 would shift the market sentiment bearish, exposing mid-term targets at $0.095 and even $0.059. As of now, Dogecoin stands at a critical juncture, with December holding the key to whether meme-inspired crypto enthusiasts will witness a resurgence in momentum or endure further downturns before any potential recovery.
