Dogecoin (DOGE) is currently facing a series of bearish signals that suggest the price could drop to $0.10. A 37% decline from its current level of around $0.17 could be on the horizon if the market continues on its current trajectory. The formation of these signals has caught the attention of several analysts, who believe the price could continue to fall unless a reversal occurs soon.
Bearish Market Trends Indicate a Drop Below Key Support
One of the main concerns for Dogecoin is the sloping down of its 50-period moving average (MA), which is seen on both the 4-hour and daily charts. This indicates a bearish short-term trend.
The moving average is positioned above the current price, creating resistance that has capped any attempts at a price rebound. Traders are watching closely to see if DOGE will break below the $0.16 support level, as this could lead to a rapid drop in price.
According to analysis from Ali Martinez, there is very little buying interest below the $0.16 level. If this support fails, the next significant support zone lies much lower, around $0.073. With such a large liquidity gap between these levels, the price could experience a swift decline if $0.16 is breached.
Patterns and Bearish Sentiment Continue to Weigh on Dogecoin
Adding to the concerns is the appearance of a double-top pattern around the $0.183 mark. This pattern indicates that buyers were exhausted twice at the same price point, which often signals a shift in market momentum. This pattern, combined with broader market weakness, such as Bitcoin’s struggles below $100,000, leaves Dogecoin vulnerable to further downside.
Despite the bearish sentiment, some analysts, including Crypto Patel, believe Dogecoin could see a major rally in the long term. Patel has predicted a possible 10x to 30x price increase, citing a potential parabolic rally similar to those seen in previous bull cycles.
However, these predictions are based on the assumption of a broader market recovery, which currently seems uncertain given the challenges Bitcoin faces.
While some analysts, like Crypto Patel, foresee a massive rally in the future, others believe that Dogecoin is at risk of further decline if the broader market remains weak. The $0.16 support zone is crucial in determining the next move for DOGE. If it holds, a recovery may be possible; if it breaks, the meme coin could face a much deeper correction.