Dogecoin Faces 59% Crash Risk as Price Targets Key $0.06167 Support
Dogecoin (DOGE), the meme-inspired cryptocurrency, is under growing pressure after breaking below a key trendline that had supported...
Dogecoin (DOGE), the meme-inspired cryptocurrency, is under growing pressure after breaking below a key trendline that had supported its price since 2018.
According to analyst Ali Charts, the recent rejection at the $0.16395 Fibonacci retracement level signals a potential shift in momentum toward a deeper correction.
The technical outlook has turned sharply bearish, with analysts now warning that DOGE could fall as much as 59% from current levels. The next major support lies near $0.06167—the 0.618 Fibonacci retracement level—an area that previously served as a critical floor.
This concern is compounded by a recent transfer of 300 million DOGE (worth approximately $41.7 million) to Binance, a move often associated with impending sell pressure.
Key Technical Developments:
Price Rejected at $0.16395 (0.786 Fibonacci level)
Broke below 6-year ascending parallel channel
Next major support: $0.06167
A failure to hold above $0.06167 could open the door to further declines toward $0.060—or lower—confirming the bearish trajectory in the near term.
A Glimmer of Hope? RSI Shows Bullish Divergence
Despite the downward momentum, some traders see early signs of a potential reversal. Notably, analyst Trader Tardigrade has highlighted a bullish divergence on the daily Relative Strength Index (RSI), where momentum appears to be recovering even as price continues to drop. This could be a sign that sellers are losing steam.
DOGE is currently hovering near the $0.135 level—a zone that has acted as both support and resistance in the past. A decisive bounce here could trigger a broader recovery move.
What Analysts Are Watching:
$0.135: Key pivot for reversal
Bullish divergence on RSI suggests weakening selling pressure
Recovery could eventually target $2 if momentum builds over time
Still, if DOGE fails to reclaim $0.135, the downtrend could accelerate, with the price likely heading toward $0.12 or $0.10 in the short term.
Whale Activity Fuels Market Uncertainty
Investor sentiment remains mixed, with recent whale activity adding to the cautious outlook. The transfer of 300 million DOGE to Binance suggests large holders may be preparing to sell, adding pressure to an already vulnerable market.
Crypto analyst Kev Capital emphasizes that $0.18 is a critical resistance zone. If DOGE can’t close above this level—or the next one at $0.20—any near-term rally may be short-lived.
Resistance Levels to Monitor:
$0.18: Short-term pivot for bullish continuation
$0.25 and $0.30: Long-term targets if momentum returns
Unless bulls step in soon, Dogecoin risks slipping further, with key support levels in play and resistance zones keeping upside potential in check.
Conclusion:
Dogecoin’s outlook is clouded by bearish technicals, large-scale sell signals, and a cautious investor base. While signs of bullish divergence offer a glimmer of hope, reclaiming $0.135—and especially $0.18—will be critical for reversing the current trend. Until then, the risk of a deeper correction remains firmly on the table.
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