- Dogecoin price may not be able to prevent a 14% decline as the token is sealed in a downtrend.
- DOGE is testing its last line of defense at $0.120 before the token drops toward $0.104.
- In order to invalidate the bearish chart pattern, Dogecoin will need to slice above $0.156.
Dogecoin price is preparing for a further decline as the prevailing chart pattern suggests that DOGE is headed in a downward direction. The canine-themed token could tag the lower boundary of the governing technical pattern as it searches for support.
Dogecoin price locked in downtrend
Dogecoin price has been sealed within a descending parallel channel on the 12-hour chart, indicating that the momentum has shifted to the downside.
Dogecoin price could soon tag the lower boundary of the prevailing chart pattern at $0.104, resulting in a 14% fall if DOGE slices below the 78.6% Fibonacci retracement level at $0.120 before dropping toward the pessimistic target.
An additional spike in sell orders may push Dogecoin price even further toward the April 13 high at $0.096, then toward the April 11 high at $0.080.
However, if the bulls manage to reverse the period of underperformance, Dogecoin price may target the middle boundary of the governing technical pattern at $0.131, which coincides with the 21 twelve-hour Simple Moving Average (SMA) and 61.8% Fibonacci retracement level.
DOGE/USDT 12-hour chart
A further increase in bearish sentiment may incentivize Dogecoin price to reach the resistance line given by the Momentum Reversal Indicator (MRI) at $0.141, coinciding with the 50 twelve-hour SMA.
If a spike in buy orders occurs, Dogecoin price will aim for the 100 twelve-hour SMA at $0.147 next, before attempting to tag the upper boundary of the descending parallel channel at $0.156.
Investors should note that if Dogecoin price manages to slice above the topside trend line of the prevailing chart pattern, the prevailing downtrend may be invalidated.
