Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Dogecoin, which recently peaked locally at around $0.50, has been on a sheer decline, dropping 40%. As the asset tries to hold onto the momentum it acquired earlier in the bull run, the sharp decline indicates strong selling pressure. Given that DOGE is currently trading close to $0.29, concerns are being raised regarding its future course and important levels to keep an eye on. 

Dogecoin, which was once a strong support level, has now broken below the critical 50 EMA, according to the chart, which is currently at $0.35. With the bears firmly in control, this breakdown shows a change in market sentiment. Around $0.28, where the 100 EMA aligns, is the next significant support level. If this level is not maintained, DOGE may decline to its next crucial support, which is located at $0.21 and is the 200 EMA.

The level of $0.35 now serves as a significant barrier on the resistance side. DOGE must break above this level and reestablish it as support in order to regain its bullish momentum. The $0.38 level is another important resistance zone after that. The volume profile suggests that traders are aggressively exiting positions due to a sharp increase in selling activity.

Nonetheless, there may be a chance for a short-term consolidation or relief rally as the RSI gets closer to oversold territory at 31. Should buyers intervene to protect the $0.8 support level, such a move would be contingent. In the future, DOGE's course will be greatly influenced by the sentiment of the larger cryptocurrency market. Dogecoin has a difficult time recovering from its sharp losses, but a recovery in market conditions might help stabilize the cryptocurrency. 

Conversely, additional market weakness might cause DOGE to enter a more severe correction. Finally, the recent losses of Dogecoin highlight how erratic the cryptocurrency market is. To predict the asset's next move, traders should keep a close eye on the $0.28 support and $0.35 resistance levels. For the time being, DOGE is navigating this difficult phase with caution.