Dogecoin drops 4% to $0.2222 as Bitcoin retraces. Will DOGE revisit the $0.20 level amid a Double Top breakdown?As Bitcoin pulls back toward the $102,000 mark, meme coins are experiencing a sharp correction. Dogecoin has dropped nearly 4% today.Currently trading at $0.2222, Dogecoin marks its third consecutive red day following a 35% rally last week. Will this short-term pullback push DOGE to retest the $0.20 psychological level?Dogecoin Price Analysis Signals $0.20 Retest in Short-termAfter a significant surge to the $0.25 psychological resistance, Dogecoin entered a sideways phase. However, the loss of momentum during consolidation has led to the formation of a bearish Double Top pattern.Dogecoin price chartThe neckline of the pattern, located at $0.2225, previously acted as a support and triggered a bounce on May 11. However, with the recent intraday decline, DOGE has now confirmed a breakdown below the neckline with a decisive four-hour close at $0.2185.A minor recovery of 1.56% appears to be retesting the breakdown point. Based on the Double Top pattern, a further decline could test the $0.20 psychological support level. This also raises the risk of a breakdown below the 50-EMA, which currently sits at $0.2091.Additionally, the four-hour RSI has dropped from the overbought region to the midline during the consolidation and breakdown phase. This indicates fading momentum, increasing the likelihood of a deeper correction.If buyers fail to hold the $0.20 support, DOGE may decline further to test the 200-EMA near the $0.18 psychological level. On the other hand, a decisive four-hour close above $0.2225 would invalidate the bearish pattern and could propel DOGE toward the $0.2506 level, increasing the likelihood of a breakout.Downfall in DOGE Fuels Long LiquidationsAmid the broader market retracement, Coinglass data shows long liquidations have exceeded $500 million in the past 24 hours. Dogecoin alone has seen a spike in long liquidations, totaling $3.38 million in the last four hours and $21.72 million over the past 24 hours.This increase in long liquidations signals short-term bearish dominance in the derivatives market.DOGE Total Liquidations ChartAnalysts Predict Extended Rally for DogecoinIn a recent tweet, crypto analyst Ali Martinez highlighted Dogecoins bullish momentum as it approaches a critical resistance zone, ranging from $0.2490 to $0.27. This area previously acted as resistance during the February correction phase.A breakout above this range could drive DOGE toward previous highs near $0.48. However, failure to break out may result in a pullback toward $0.20 or even $0.1550.Despite short-term volatility, crypto analyst Jonathan Carter remains optimistic on Dogecoin. He points to a descending channel breakout on the 3-day chart, which has been forming since November 2024.As this breakout rally gains traction, Carter projects a price target of $0.4450, with intermediate resistances at $0.287 and $0.34.
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