Dogecoin (DOGE) tumbled below a four-month ascending channel on June 5, hitting analyst Ali Charts’ downside target of $0.0883 and now testing the lower boundary of that channel. The move sent DOGE to $0.0827, a 6.45% daily drop, with warnings that a failure to hold support could expose the next major supply zone near $0.067.
Ali Charts confirmed the $0.0883 target was reached and noted that “the lower boundary of the channel is now being tested. As long as this support holds, I think a recovery toward $0.1019 and $0.1156 remains likely. A breakdown, however, could expose the next major supply zone near $0.067.” The ascending channel had been in place since the February low around $0.070 and reached a May high near $0.120 before breaking down.
On-chain and derivatives data reinforced the bearish pressure. Spot netflow recorded $15.54 million in outflows on June 5, indicating net selling. DOGE options volume surged 181.31% to $281.12, while futures open interest fell 6.04%, a pattern consistent with hedging rather than directional conviction. Trading volume for DOGE rose 9.16% to $1.41 billion as the price declined, reflecting active sell-side pressure.
Technical indicators remain weak. The daily RSI dipped near 21.49, deep into oversold territory, while the MACD line stays below its signal line with a negative histogram. These suggest downside momentum has not yet fully abated, though oversold readings could enable a short-term bounce. If $0.080–$0.084 support fails, the next downside targets are $0.075 and then $0.067. A recovery would require a clean reclaim of the $0.10 resistance, with further hurdles at $0.1019 and $0.1156. Until then, sellers remain in control.
