• Dogecoin price is hovering below the $0.062 target, hinting at a continuation of the downtrend.
  • Investors must be prepared for a 17% crash if sellers continue to offload their holdings.
  • A daily candlestick close above $0.062, on the other hand, could see DOGE rally 16% to $0.073.

Dogecoin price shows that the crash is likely to continue until a stable support level is reached. Investors need to be cautious for the next few days, at least until sellers and the bearish momentum dissipate. 

Dogecoin price to realize more losses

Dogecoin price has breached the descending triangle formation formed since May 12. Additionally, the excessive selling pressure has pushed DOGE past its target at $0.062 to where it currently trades - $0.056.

The $0.062 target is attained by projecting the 18% distance between the first swing high and the swing low to the breakout point at $0.076.

Due to the overwhelming sell-side pressure in the crypto markets, altcoins, including Dogecoin price have dropped uncontrollably. As DOGE trades around $0.056, the chances that this move will continue are high.

In such a case, investors should be prepared for a further 17% crash to the $0.046 support level. This barrier was a significant launching pad in early 2021 that helped the meme coin rally 1,500% in the next few weeks. 

Therefore, market participants can expect sidelined buyers to step in at this level and cauterize the bleed.

DOGE/USDT 4-hour chart

DOGE/USDT 4-hour chart

An interesting metric that supports the possibility of a descent into a stable support level is IntoTheBlock’s Historical Break Even Price. This metric is used to track the number of addresses with realized profits and losses and their variation over time.

Currently this indicator shows that 42% of all the investors that purchased DOGE since 2022 are ‘Out of the Money.’ Roughly 55% of the remaining are ‘In the Money,’ but are at the risk of being ‘At the Money’ or ‘Out of the Money’  if the Dogecoin price continues to drop.

DOGE historical break even price chart

DOGE historical break even price chart

Since Dogecoin price has already hit the descending triangle’s forecasted target at $0.062, there is no invalidation thesis per se – the theory has already been proven correct. Hence, a recovery above $0.062 could see DOGE rally to $0.073 after a 16% climb.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin: Retraces to around $75,000 after hitting new all-time high

Bitcoin: Retraces to around $75,000 after hitting new all-time high

Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.

More Bitcoin News
Ethereum price jump spurs most significant ETF inflows in six weeks

Ethereum price jump spurs most significant ETF inflows in six weeks

​After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.

More Ethereum News
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory

Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory

The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.

More Crypto News
Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory

Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory

Paul Grewal, Coinbase's Chief Legal Officer, has asked the US Securities & Exchange Commission to reconsider how it regulates cryptocurrencies now that Donald Trump has been elected to a second term as president.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP