- Dogecoin is at a critical level at $0.17 which could ignite a 1,450% surge, but losing support might drag it down to $0.06.
- A death cross hints at a possible 60% crash, while dwindling network activity suggests bearish sentiment.
Dogecoin has endured a bear week, losing 23% of its value and yet struggling to stay above $0.17. This downtrend is an effect of the broader market selloff resulting in wiping out recent gains across major cryptocurrencies. Dogecoin currently trades below $0.20, and faces two starkly different paths: a powerful rally toward $2.74 if support holds or a sharp decline to $0.06 if selling pressure intensifies.
Crypto analyst Ali Martinez highlights a key pattern on DOGE’s chart. The meme coin currently rests at the lower boundary of an ascending channel—an area that has historically triggered breakouts. If this level can be sustained, Doge could skyrocket 1,450% to $2.74. However, on the negative side a breakdown below $0.17 would nullify bullish hopes, potentially dragging DOGE toward $0.06.
Technical Indicators Reveals Bearish Future
Despite its long-term bullish potential, technical indicators paint a different picture in the short term. One major concern is Dogecoin’s declining network activity. Active addresses have plummeted from 1.75 million in November 2024 to just 87,100. A drop this steep signals waning demand, making a sustained rally harder to achieve.
On the 4-hour chart, DOGE remains trapped in a descending channel. Resistance sits at $0.22, while support hovers near $0.18. The Relative Strength Index (RSI) stays under 50, confirming that sellers still control the market. Meanwhile, the Supertrend indicator has flipped bearish, flashing a red signal above DOGE’s price. If this trend continues, reclaiming $0.22 may prove difficult, and the coin could instead revisit lower support zones between $0.17 and $0.18.
Elon Musk’s Influence Fades as Death Cross Signals 60% Drop
Elon Musk’s tweets once sent Dogecoin soaring, but that effect appears to be fading. According to Bloomberg, Musk’s net worth has taken a $103 billion hit this year. With mounting legal and political challenges, his engagement with DOGE has noticeably declined. That shift raises concerns—without Musk-driven hype, can DOGE sustain its past momentum?
Adding to the bearish signals, a looming death cross on DOGE’s chart spells trouble. The 50-day EMA is slipping below the 200-day EMA, a classic sign of a deepening downtrend. The last time this pattern emerged, back in July 2024, DOGE tumbled 40% over the following weeks. If history repeats, DOGE could slide to $0.1680, with a worst-case scenario target of $0.08—a staggering 60% drop from current levels.
Despite the gloom, some analysts still see hope. Holding above $0.17 could spark a recovery toward $0.22. But if DOGE breaks below this support, the downtrend could likely accelerate, pushing the meme coin into a steeper decline. The coming days will be crucial in deciding its fate.
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