Dogecoin Drops Below 0.23 USD, Is a Collapse Coming?

Dogecoin has fallen sharply in the past 24 hours, down 5.82% to $0.2307. The memecoin currently has a market capitalization of $34.73 billion, with trading activity surging 10.72% to $4.86 billion. The price of DOGE fluctuated between $0.2181 and $0.2451 over the past day, reflecting increased volatility as market sentiment weakens. This decline occurs against the backdrop of widespread risk aversion in the global market. The Producer Price Index (PPI) of the US rising higher than expected has diminished hopes that the Federal Reserve (Fed) will cut interest rates. This also impacts investors' willingness to invest in riskier assets. Are you worried about the amount of DOGE you hold? Don't worry, this analysis will provide you with potential short-term price targets. Dogecoin Price Analysis Technically, DOGE is showing signs of stress. The price has fallen below the 7-day simple moving average at $0.233 and has been unable to maintain above the 23.6% Fibonacci retracement level at $0.2638. Currently, the price is trading closer to the 38.2% retracement level at $0.2496 but is still struggling to gain momentum.

The RSI index has fallen to 48.29, a neutral level, indicating that buying strength is weakening. The recent break of the support level at $0.23, which has now turned into resistance, increases the risk of the price continuing to fall to $0.21, an important threshold marked on the 4-hour chart. The Bollinger Bands are tightening, indicating that volatility is about to expand. If the buyers cannot defend the current level, the price of DOGE may test the support level of $0.21. Conversely, a strong recovery above $0.235 is needed to stabilize sentiment and reopen the upward momentum towards $0.25 and beyond.