Dogecoin Drops 23% – Will DOGE Crash 60% or Rally 1,450% to $2.74?
Dogecoin is at a crucial $0.17 support level. Holding steady could trigger a 1,450% surge, but failure may send it crashing down to $0.06.
By Tylt Editorial Team
Dogecoin has dropped 23% in the past week, struggling to hold $0.17.
A potential 1,450% rally to $2.74 is possible if support holds.
A bearish ‘death cross’ hints at a possible 60% drop if DOGE breaks below key levels.
Dogecoin has taken a significant hit over the last seven days, shedding 23% of its value and slipping below $0.20. This dramatic decline aligns with the broader crypto market selloff, erasing gains across major digital assets. Currently hovering near $0.17, Dogecoin stands at a make-or-break level. Analysts suggest that holding this support could propel DOGE to $2.74, but if selling pressure intensifies, the meme coin might crash to as low as $0.06.
Crypto analyst Ali Martinez has pointed out a crucial pattern in DOGE’s price action. The coin is resting on the lower boundary of an ascending channel, an area historically known for triggering explosive breakouts. If this trend repeats, DOGE could witness an astonishing 1,450% surge, sending it toward $2.74. However, any failure to maintain support at $0.17 could mean a prolonged downturn, potentially wiping out its bullish prospects and dragging prices to $0.06.
Despite the possibility of long-term gains, technical indicators suggest further short-term pain. A significant concern is the decline in Dogecoin’s network activity. The number of active addresses has plummeted from 1.75 million in November 2024 to just 87,100. This sharp decrease signals waning investor interest, making a sustained price rally more challenging.
On the 4-hour chart, DOGE remains stuck in a descending channel. Resistance at $0.22 presents a tough barrier, while the nearest support hovers around $0.18. The Relative Strength Index (RSI) remains below 50, confirming that sellers dominate the market. Additionally, the Supertrend indicator has turned bearish, flashing red signals above DOGE’s price. If this downtrend continues, breaking past $0.22 will be a struggle, and DOGE could be forced to retest lower support zones between $0.17 and $0.18.
Elon Musk’s once-powerful influence over Dogecoin appears to be waning. His tweets previously drove DOGE to new highs, but that momentum has faded. Bloomberg reports that Musk’s net worth has taken a $103 billion hit this year, and with legal and political battles mounting, his engagement with Dogecoin has significantly diminished. Without Musk’s backing, many traders question whether DOGE can sustain its previous price surges.
Further dampening bullish hopes, Dogecoin is facing a looming ‘death cross’ pattern. The 50-day Exponential Moving Average (EMA) is slipping below the 200-day EMA, a classic indicator of a deepening downtrend. The last time DOGE experienced a similar setup in July 2024, prices tumbled 40% over the following weeks. If history repeats itself, DOGE could drop to $0.1680, with a worst-case scenario target of $0.08—representing a staggering 60% decline from current levels.
Still, some traders remain hopeful. If Dogecoin manages to stay above $0.17, it might spark a recovery toward $0.22. However, breaking below this key support level could intensify selling pressure, pushing DOGE into a deeper decline. The next few days will be critical in determining the coin’s fate.
