Dogecoin drops below key $0.175 support line after early May highs.
TradingView analyst identifies three potential price equilibrium zones. Contrasting analysis shows potential bullish wedge formation.
Dogecoin’s price action has shifted toward bearish territory in recent days, prompting analysts to reassess the popular meme coin’s trajectory. Early in May, DOGE briefly touched above $0.18, but by May 3, it had reverted to a decline below the $0.175 support line.
The price dropped further until May 6, when it hit a local low of slightly over $0.165. As of press time, Dogecoin trades near $0.1734, showing a modest 3% recovery over the past 24 hours. However, this small bounce has done little to resolve growing uncertainty around its broader trend.
As market watchers evaluate the coin’s position, two competing interpretations have emerged about Dogecoin’s next moves.
Dogecoin macro resistance points suggest weakness
TradingView analyst Farid Saremi has plotted a 3-hour DOGE/USDT chart to search for macro trends. Dogecoin in December was able to achieve a bit above $0.50, while January registered a lower high of approximately $0.43.
After these highs, the price fell to below a range of consolidation at $0.18 to $0.21. This is now the primary equilibrium range, which Dogecoin has fallen below, showing weaker strength.
Saremi sees this decline below the zone as a breakdown, meaning that the buyers could not hold it together. Dogecoin shows no indication of any meaningful growth opportunities in the medium term, and the price action continues to be drawn to lower zones in his opinion.
With the elimination of the principal equilibrium zone, Saremi finds two alternative levels to track. The first is at $0.10894, where price consolidation took place in January 2025. This level is intermediate support and may become the new equilibrium zone if bearish momentum is sustained.
Lower down, yet another level at around $0.07478 is the ultimate destination for bears. It is the price clustering point which has already existed during the period of October-November 2024.
Saremi added that while outside factors such as big holder moves or news will affect timing, timing factors will never invalidate target levels. “We may be behind schedule in hitting the target, but the targets will be hit,” he said.
