Is the Dogecoin (DOGE) price drop an investment opportunity this time? Here’s the analysis!

Updated

May 6, 2025

Gambar Is the Dogecoin (DOGE) price drop an investment opportunity this time? Here’s the analysis!

Jakarta, Pintu News – Dogecoin has experienced another price drop after failing to break the $0.1880 zone, similar to Bitcoin and Ethereum . Now, the popular cryptocurrency with a Shiba Inu dog mascot is showing signs of recovery. Is it a good time to buy?

Recent Dynamics of Dogecoin (DOGE) Price

Dogecoin (DOGE) started a fresh decline after not making it past the $0.1880 zone. The price dropped below the $0.1800 and $0.1750 support levels, and briefly tested the $0.1680 zone. The lowest point was formed at $0.1685, and now Dogecoin (DOGE) is trying to recover. The price has risen past $0.1700 and is approaching the 23.6% Fibonacci retracement level of the decline from $0.1843 to $0.1685.

Also Read: BONK Freefalls 8% in 24 Hours: Check out the Price Levels that Can Prevent Further Declines!

Technical Analysis: Challenges and Resistances Faced

Currently, Dogecoin (DOGE) is trading below the $0.1750 level and the 100-hour simple moving average. Immediate resistance is near the $0.1720 level, with a key bearish trend line having resistance at $0.1725 on the hourly chart of the DOGE/USD pair. The first major resistance for the bulls may be near the $0.1765 level, which is the 50% Fibonacci retracement level of the decline.

Potential Downside: What Happens If Dogecoin (DOGE) Fails to Rise?

If the price of Dogecoin (DOGE) fails to rise above the $0.1740 level, there could be another drop. Initial support on the downside is near the $0.1685 level, with the next major support near the $0.1650 level. Major support is at $0.1600. In the event of a downward break of this support, the price could drop further, possibly towards the $0.1550 level or even $0.1450 in the short term.

Technical Indicators: Signals from MACD and RSI

The hourly MACD indicator for DOGE/USD is currently losing momentum in the bearish zone. Meanwhile, the hourly Relative Strength Index (RSI) for DOGE/USD is now below the 50 level, indicating that there could still be quite strong selling pressure in the market. The key support levels are at $0.1685 and $0.1650, while the key resistance levels are $0.1740 and $0.1780.

Conclusion: Is It the Right Time to Buy Dogecoin (DOGE)?

Given the current conditions and technical analysis, investors need to be cautious. While there is potential for recovery, the risk of further decline cannot be ignored. Decisions to buy should be based on in-depth analysis and a solid understanding of current market dynamics.

Also Read: Ethereum Hangs Above $1,770: Can It Reach $2,030 Next?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.