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  • Dogecoin price retreat continues amid dwindling hopes for a recovery in the near term.
  • Support at $0.12 must hold to avert declines from extending to $0.1.
  • Elon Musk remains quiet amid the Dogecoin’s bloodshed that has left many investors frustrated.

Dogecoin is among the worst-hit coins during the ongoing cryptocurrency selloff. The meme coin rose to highs around $0.75 amid tweets by Tesla’s founder Elon Musk. On one occasion, Musk said he would put a literal Dogecoin on the moon.

The billionaire also insinuated that Tesla could accept DOGE as payment for its electric vehicles. The tweets led investors in masses to the meme coin, catapulting it into the top 10.

However, the numerous praises for Dogecoin have gradually turned to tears, while Musk remains silent. It is doubtful that another tweet would lift Dogecoin from the rabbit hole.

Is Dogecoin price downtrend stoppable?

The 12-hour chart shows Dogecoin price pullback from the record highs to areas below $0.2. The last stroke was perhaps breaking below the crucial support at $0.24. If the price makes a 12-hour close under $0.2, the bearish leg is bound to stretch toward $0.1.

According to the Moving Average Convergence Divergence (MACD) indicator, the bearish outlook is still apparent. In other words, sellers may continue to have more influence in the coming sessions. This follows MACD’s slide below the zero line and the MACD line (blue) crossing under the signal line. The bearish grip will tighten if the technical picture remains unchanged, pushing Dogecoin price toward $0.1.

DOGE/USD 12-hour chart

DOGE/USD price chart
DOGE/USD price chart by Tradingview

In/Out of the Money Around Price (IOMAP) by IntoTheBlock (ITB) validates the downward price action. This on-chain model tracks addresses that have purchased Dogecoin and groups them along with the volume acquired. Depending on the size of these bands, investors can identify support and resistance zones.

For instance, the model illustrates the most extensive seller congestion zone between $0.18 and $0.185. Here, around 1,500 addresses previously bought roughly 355 million DOGE. This is a significant resistance zone with the ability to sabotage or delay recovery attempts.

Dogecoin price IOMAP model

Dogecoin IOMAP model
Dogecoin IOMAP model by Tradingview

On the downside, Dogecoin sits on relatively weak support areas. Nonetheless, substantial buyer congestion is highlighted between $0.156 and $0.16. Here, nearly 12,600 addresses previously bundled up around 176 million DOGE. If this support shatters, Dogecoin price may close in on $0.1.

Looking at the other side of the fence

The bearish outlook to $0.1 will be invalidated if Dogecoin holds above the technical support at $0.15. Here, investors will be encouraged to buy and speculate gains to higher levels. A daily close above $0.2 will also add credence to the uptrend and perhaps bolster Dogecoin price above $0.3.

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