During Wednesday’s US trading hours, Dogecoin (DOGE), the cryptocurrency that powers the decentralized payments-focused Dogecoin blockchain, experienced a slump in its value. The bearish trend began when DOGE failed to break above its 21-Day Moving Average (DMA) in the mid-$0.070s, and after a failed attempt to retest the 200DMA around $0.079. Prior to the slump, the $0.079 zone had acted as a crucial support zone, which has now become resistance. Dogecoin has been stuck in a downtrend since early February, with the latest drop pushing DOGE back below the $0.07 level. Broader crypto markets are also experiencing similar sell pressure, after rallying earlier in the week. Technical analysts believe that the bearish trend is likely to continue, and a retest of recent lows in the $0.065 area is more likely than a rally above $0.08. If the downtrend persists, Dogecoin may retest last year’s lows in the $0.05 area. However, some investors believe that broader macroeconomic changes could soon support DOGE, as concern about the stability of the traditional finance sector and aggressive easing financial conditions could continue to prop up crypto. If this occurs, DOGE may break its downtrend and move to recent highs in the $0.10 area.
