Dogecoin has seen a sharp decline of over 10% in the past week, falling to $0.179. The drop coincides with heightened uncertainty linked to Elon Musk and Donald Trump, which appears to have dampened investor sentiment.
Despite the setback, Dogecoin remains the eighth-largest cryptocurrency by market capitalisation at $26.88 billion and commands a dominance of 0.8299%.
Technical analysis shows widening Bollinger Bands on the 4-hour chart, indicating increased volatility. The price touched the lower band near $0.17 before making a mild recovery towards the midline.
Meanwhile, trading volume surged to $1.63 billion, suggesting a large-scale sell-off. The Relative Strength Index (RSI) fell into an oversold zone but is now showing signs of recovery at 39.75, hinting at a potential reversal.
If bullish momentum continues, Dogecoin could test the resistance level at $0.183, with possible targets at $0.200 and $0.217. However, failure to break through could send the price down to the key support level of $0.165 in the coming weeks.
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