Is The Doge Sick? Why Dogecoin Could Be In For A Bigger Drop

Dogecoin (CRYPTO: DOGE) was apparently preparing for a bullish turn, but a recent downward movement of the whole crypto market is crashing all bullish dreams for the world's leading memecoin.

What Happened: Dogecoin is trading at $0.2144 after losing about 10% over the last 24 hours. The coin was simply following the overall crypto market's direction which — as usual — was set by Bitcoin, which is down by 8% over the 24 hours to press time and trading at $43,800.

See Also: Dogecoin Slumps In Crypto Crash But These Minor Knock-Offs Are Striking Gains

Looking at Dogecoin's daily chart, it looks like the coin crashed down through the 0.13 Fibonacci level at $0.235. The importance of the loss of this support can't be understated considering that the price was resting on it for over a week and that the next support is the lowest price the coin traded at since its all-time high: $0.16.

Fortunately for Dogecoin proponents, the coin's RSI is already borderline oversold at 33, meaning there's hope that the bearish push will be too weak to breach the next resistance. If the coin were to breach that level and make new lows, it would serve as the final and definitive confirmation that the coin is in for a lengthy downtrend.