What to know:

• Dogecoin’s recovery from December lows appears to have ended.
• The DOGE price has fallen below a crucial Fibonacci retracement level, undermining the prolonged rally from August.

Dogecoin (DOGE), the largest memecoin by market cap, dropped below a short-term uptrend line on Monday, signaling a potential end to the recovery from December lows and marking the conclusion of a five-month rally.

Prices have since fallen below the 38.2% Fibonacci retracement level that initiated in August, which reached highs around 48 cents in December before decreasing again. A fundamental rule of technical analysis states that to sustain its current trend, a market must remain above this level. Failure to do so signifies the end of the trend.

The moving average convergence divergence (MACD) histogram is displaying deeper bars below the zero line, indicating an intensifying bearish momentum. Moreover, five- and ten-day simple moving averages are trending downward, suggesting a bearish bias.

Support levels are identified at approximately 26 cents, the low reached on December 20, followed by 23.4 cents, coinciding with the 61.8% retracement of the August-December rally. For a reversal of the bearish outlook, DOGE would need to recover back to the uptrend line established from December lows.