Is A 35% Decline On The Horizon For DOGE?

In a recent post on the X platform, prominent crypto analyst Ali Martinez revealed that two of the biggest meme tokens, Dogecoin and Pepe, are showing a high degree of correlation.

Dogecoin (DOGE) has grabbed extra attention from investors, especially after Donald Trump took office and put Elon Musk in charge of D.O.G.E. — an acronym for Department of Government Efficiency. However, this interesting relationship is not particularly reflected in the price of the meme token.

On the contrary, the meme coin market has been suffering from the liquidity-draining effect of the TRUMP token and other political tokens that followed its launch. According to data from CoinGecko, the meme market cap stands at around $93.5 billion, reflecting an almost 10% decline in the past day.

Is A 35% Decline On The Horizon For DOGE?

In a recent post on the X platform, prominent crypto analyst Ali Martinez revealed that two of the biggest meme tokens, Dogecoin and Pepe, are showing a high degree of correlation. The crypto pundit observed that the Dogecoin price appears to be following the price of PEPE.

Related Reading: Crypto Analyst Predicts XRP Price Could Touch $15 Easily If This Happens

It is not uncommon for two tokens to follow a similar price trajectory, especially if they fall into the same market category (as seen with Dogecoin and Pepe). While there is no guarantee that the DOGE price is mirroring PEPE’s price, this seeming correlation could provide insight into the future trajectory of the former.

According to Martinez, a deep correction could be on the cards for the price of Dogecoin if it is truly following PEPE. This bearish forecast is based on the breach of a key support level around $0.000017 by the Pepe price towards the end of February.

The price of PEPE witnessed a sharp decline to around $0.000011 (an over 35% drop) after breaking this crucial support. This support zone lies around the $0.31 mark on the Dogecoin chart and has acted as a cushion for the DOGE price multiple times in the past.

However, Dogecoin could see its price fall to around the $0.2 mark if a similar price pattern plays out on its four-hour chart. With no major support around this area to cushion this downturn, the DOGE price could potentially suffer an even worse decline.

Dogecoin Price Overview

At the time of writing, the price of DOGE trades around $0.305, reflecting an over 3% fall in the last 24 hours. This single-day performance highlights the meme coin’s struggles in recent weeks, with nearly a 12% decline in the past seven days.

Related Reading: Is The Crypto Market ‘Satiated’ For Now? Analysts Say Bitcoin Will Continue Sideways Move

After reaching a local high of $0.46 in early December, the price of Dogecoin witnessed a downturn to around $0.26 in less than three weeks. However, the meme token has been moving mostly sideways, hovering around the $0.35 region.