The cryptocurrency market has been reeling from a broader sell-off, and Dogecoin has not been spared, with its price recently dropping to a three-month low of $0.20. While there has been a slight recovery, concerns remain that the decline is not over yet. According to a crypto analyst known as David_Perk on TradingView, Dogecoin is still in a strong downtrend, with indicators pointing toward further losses that could see the meme coin crashing to $0.15.
Dogecoin’s Price Weakness And The Risks Of Further Decline
Dogecoin’s recent price crash was a very daunting move for bullish investors. However, the crash led to a rebound at the $0.2 level, and now seems to be stabilizing at this support level. While this is a temporary slowdown in the crash, technical analysis shows there’s still a risk of more downside moves.
Crypto analyst David_Perk, who shared his outlook on TradingView using the 12-hour Dogecoin candlestick chart, maintains that the meme coin remains in a firm downtrend. According to the analysis, there are no clear signs of a bullish reversal at this stage, with price action continuing to reflect selling pressure.
David_Perk’s analysis suggests that DOGE is currently positioned within a strong descending channel and is approaching a critical daily trendline. Notably, this descending channel has been in formation since the beginning of this year.
The loss of multiple support levels further strengthens the argument that Dogecoin could be headed for another leg downward. Fibonacci retracement levels and historical price data reinforce this bearish outlook, with the analyst predicting a minimum 30% drop from the current levels.
Is A Further Crash To $0.15 Really Coming?
According to the analyst, Dogecoin could continue declining until it bottoms out at $0.15, based on historical data and Fibonnacci levels. Notably, the recent dip has erased a large portion of the gains Dogecoin holders had accumulated since October 2024, and if the decline extends to $0.15, it would mark a near-total retracement of the rally that began late last year. Particularly, such a move would mark a 68% loss from Dogecoin’s recent multi-year high in December last year.
At the time of writing, Dogecoin is trading at $0.21, up by about 4.5% in the past 24 hours, but still down 16.5% in a seven-day timeframe. The only way to avoid such a dip to $0.15 is if DOGE bulls can maintain a foothold above the support at $0.20 and break above $0.25. Failure to break above $0.25 would keep Dogecoin trapped in its descending channel. The next thing in this case would be the creation of a lower low, which would ultimately translate to a crash below $0.20.
Fortunately, on-chain data shows that long-term DOGE holding addresses are still in “Denail,” which is still a positive signal.
Related Posts
