Dogecoin’s recent attempt at recovery has quickly unraveled, and a deceptive price structure is starting to form beneath the surface. A short-lived rally driven by external news (specifically, Donald Trump’s announcement to pause tariffs sparked optimism across the market, but that optimism is fading just as fast. According to a technical analysis by crypto analyst RLinda on TradingView, the meme coin may now be returning to its correction path with another 30% price crash.
False Breakout Confirmed As Dogecoin Falls Back Below Resistance
RLinda’s analysis zeroes in on a failed breakout between the $0.157 and $0.1622 resistance zone. The rally, provoked by Trump’s tariff-related announcement, saw Bitcoin surge briefly and pull altcoins like Dogecoin. During this period, Bitcoin jumped 10% from $75,200 to $83,300. This was enough to drag Dogecoin higher, with the meme coin pushing to $0.163 after breaking past resistance at $0.16.
However, the move lacked staying power. Now that the initial reaction is fading, Bitcoin has retraced some of its gains and is trading around $81,500. Similarly, price action above the Dogecoin resistance quickly reversed, with the meme coin now consolidating beneath the $0.16 zone, which is a clear sign of a false breakout. This shift in momentum indicates a strong likelihood of further decline as the downtrend is still intact. The rally was merely a reaction to temporary news of Donald Trump’s tariffs rather than a real return of bullish momentum.
Analyst Warns Of A 30% Crash
RLinda’s chart also reflects a broader descending channel pattern that has defined Dogecoin’s price trajectory since February 14. This descending channel has been highlighted by lower highs and lower lows. After the false breakout above $0.162, it seemed the channel had finally been broken, but the resulting price action shows this is not the case. The buying pressure after Trump’s tariff announcement seems to be wearing off, and Dogecoin’s trading volume is now down by almost 50% in the past 24 hours.
This shows that sellers have reclaimed dominance, and momentum now leans heavily in favor of a downside continuation. If the price fails to reclaim the resistance zone quickly, Dogecoin could slip into a steeper correction phase.
In her analysis, RLinda noted that if Dogecoin closes beneath the $0.13646 support level, the next zones of interest lie at $0.1277 and $0.1154. A weekly trigger at $0.14217 adds to the pressure; if broken, it opens the path toward a 30% correction until another notable support level at $0.1025. Furthermore, the analyst also noted that a retest of the trend resistance of the descending channel pattern is possible before another crash.
At the time of writing, Dogecoin is trading at $0.157, just at the lower level of the resistance zone between $0.157 and $0.1622.
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