Dogecoin (DOGE) Faces the Threat of Breaching Its Long-Held Support at $0.30

Dogecoin risks dropping by 20% to hit $0.27 as bearish momentum in the crypto market intensifies.

Today, Dogecoin (DOGE) has lost 9% of its value, falling sharply from $0.3452 to a low of $0.315. This bearish move comes after Bitcoin recently retested the $90K level, reaching a high of $90,183 with threats of dropping to lower levels.

Dogecoin, being a meme-themed crypto asset, is a major victim of Bitcoin’s bearish volatility. As the meme coin has dropped to lows of $0.3100, erasing all gains since the beginning of the year, an analyst has warned of even greater potential for a downturn.

Dogecoin Could Tank by 20% to $0.27

In a tweet, analyst Ali Martinez revealed that Dogecoin was breaking out of a bear flag pattern, and the likely target from this breakdown is the $0.27 price range. The last time Dogecoin traded at this price level was on December 20, 2024.

It’s worth noting that when Martinez made his call on Sunday morning, Dogecoin was trading at $0.3350. At press time, this bearish outlook is rapidly taking shape, with Dogecoin dangerously close to losing the $0.30 price level, which it has managed to hold above since the start of the new year.

In another development, a separate analysis of Dogecoin by The Crypto Basic further confirms the bearish outlook put forward by Martinez.

The analysis highlighted that Dogecoin’s technical indicators are showing a bearish alignment. After breaching the 23.60% Fibonacci level at $0.31385, Dogecoin risks dropping to $0.265. For context, from Dogecoin’s intraday high of $0.3452, reaching these lows would represent a loss of over 20%.

Meanwhile, the analysis also notes the potential for a double-bottom reversal if Dogecoin holds above the Fibonacci level, presenting a scenario where it could rebound to $0.40.

Corrections Are Bullish

However, the disclosure of the downside risk in Dogecoin has triggered unease among traders who had hoped Dogecoin was on track to reach the $1 price level.

A community member lamented that just days ago, Martinez had predicted a rally to $2. While expressing frustration with the bearish prediction, the individual hurled insults at the analyst for the call.

Martinez responded that corrections, in the long-term view, are bullish, as they offer another window to buy at a lower price ahead of the next rebound. He advised that those unable to stomach market volatility should avoid engaging with crypto assets.

Bullish Factors for Dogecoin Promising 11X Rebound

Despite the ongoing short-term correction, some market commentators believe Dogecoin could stage an 11X rally soon. They point to the historical trend where Dogecoin soared aggressively following U.S. presidential inaugurations. A similar event is unfolding in a week, and some see this as a bullish sign for Dogecoin.

DisClamier: This content is informational and shouldn't be considered financial advice. The矛iews expressed in this article may include the author's personal opinions and don't necessarily reflect The Crypto Basic opinion. Everyone is encouraged to do their own research before making any investment. The Crypto Basic is not liable for any financial losses.