Dogecoin (DOGE) Could Experience a 30% Price Decrease in the Next Few Hours!
Dogecoin has entered a period of uncertainty as it struggles to maintain its recent rally, characterized by a surge in optimism following Donald Trump’s announcement regarding tariffs. However, this surge was short-lived as Dogecoin failed to confirm a breakout above the resistance zone between $0.157 and $0.1622. The coin briefly peaked at $0.163 before dropping below the critical $0.16 mark, indicating a false breakout and signaling potential trouble ahead.
This downturn in Dogecoin’s price comes on the heels of a broader market surge driven by Bitcoin’s sudden increase from $75,200 to $84,300 before retreating to around $83,500. As a result, the positive impact on altcoins like Dogecoin has diminished, with the latter now consolidating just below the $0.163 resistance level. This lack of bullish momentum suggests a potential shift towards a bearish trend for Dogecoin.
Technical analysis reveals that Dogecoin is still within a descending channel since mid-February, marked by lower highs and lower lows. The failed breakout above $0.162 has dashed hopes of breaking out of this downtrend channel, with trading volumes plummeting by almost 50% in 24 hours. This decline in buying pressure indicates a strong potential for further price drops, with analysts predicting a 30% correction if critical support levels are breached.
The RSI remains in the oversold zone, reflecting persistent weakness from buyers, while declining transaction volumes signify waning interest in Dogecoin. Beyond technical indicators, the macroeconomic context, including Trump’s tariff-related news, is losing its influence on the market, causing investors to adopt a more cautious approach towards highly volatile assets like Dogecoin. This lack of fundamental support increases the risk of a significant downward correction for the meme-inspired cryptocurrency.
With warnings of a potential 30% decline looming, caution is advised for Dogecoin investors. The coin’s short-term prospects remain uncertain, with indicators pointing towards further downside if critical support levels are breached. As the market ecosystem evolves, Dogecoin’s fate hangs in the balance, awaiting decisive market movements to determine its future trajectory.
