Dogecoin price falling under $0.20 leads to a falling wedge breakdown. Will this plunge DOGE price to $0.1315?

The market capitalization of crypto meme coins is down by 7.71% to $47.53 billion. Dogecoin, the biggest meme coin, has taken a hit of 9.17%.

In the past week, Dogecoin witnessed a pullback of 30%, dropping its 7-day low price to $0.1643. Currently, Dogecoin struggles to find support after the recent bearish engulfing candle. 

Dogecoin Breaks Under A Falling Wedge Pattern

In the daily chart, the DOGE price action reveals a breakdown of a falling wedge pattern. This breakdown comes with a 12% drop on Sunday, creating a bearish engulfing candle. 

With the 4th consecutive bearish candle, Dogecoin tested the 38.20% Fibonacci level at $0.1675. Currently, Dogecoin reveals a minor intraday recovery of 2.64%, retesting the broken support trendline. 

However, it also showcases bullish support at the 38.20% Fibonacci level. With the declining Dogecoin prices, the daily RSI line is down to the oversold boundary level. 

Furthermore, the MACD and signal lines give a negative crossover with the resurgence of bearish histograms. Hence, the technical indicators reflect a significant bullish weakness in the DOGE price trend. 

Amid the recent downfall in Dogecoin prices, whales are taking a strategic exit. As per a recent update from Whale Alert, an entity has transferred 360 million DOGE tokens worth $62.66 million to Binance. 

Dogecoin (DOGE) Price Targets

The breakdown of the falling wedge pattern warns of an intense pullback. Based on the Fibonacci levels, a closing under the 38.20% Fibonacci level at $0.1675 could ignite the next stage of correction. 

In such a case, the DOGE price could test the 23.60% level at $0.13154. This warns of a potential downside risk of nearly 24%. On a bullish front, a sustenance above the broken support trendline will increase the chances of a quick retest of the 50% level at the $0.20 psychological mark.