Dogecoin (DOGE), the largest memecoin by market cap, dropped below a short-term uptrend line on Monday, signaling an end to the recovery from December lows and potentially the conclusion of a five-month rally.
Since then, prices have dropped below the 38.2% Fibonacci retracement level of the run that started in August and touching highs about 48 cents in December before dropping back. A golden rule of technical analysis says that for a market to maintain its current trend, it must hold above that level. If it fails to do so, the trend is said to have ended.
The moving average convergence divergence (MACD) histogram is printing deeper bars below the zero line, another indication of strengthening bearish momentum. Five- and 10-day simple moving averages trend south, hinting at a bearish bias.
Support is seen at around 26 cents, the low printed on Dec. 20 followed by 23.4 cents, which marks the 61.8% retracement of the August-December rally. DOGE would need to recover to the uptrend line from December lows to invalidate the bearish outlook.
