TLDR
- The notable 'falling wedge' configuration created by Dogecoin may signal a bullish shift from its current range of $0.20-$0.21.
- In just one day, the price of DOGE plummeted over 6% as broader market conditions worsened and Trump announced tariffs.
- The number of active network addresses has drastically reduced from 1.29 million in November to just 30,815 now.
- Technical experts remain divided: although some foresee a drop to $0.14, others predict a resurgence to $0.45.
- The TD Sequential indicator has signaled a buying opportunity, suggesting Dogecoin might soon pivot upwards.
Over the past 24 hours, Dogecoin's price has dropped to about $0.20, a decline of 6%. Amid a market downturn that pushed Bitcoin under $84,000, analysts see potential for a comeback as DOGE trades within a promising pattern.
DOGE Price
The price movement Analysts describe the situation using the 'monster falling wedge' pattern. In this current pattern, Dogecoin shifts between two converging lines—one dropping from recent highs and another from short-term lows, as visible on Binance's DOGE/USDT daily chart.
Crypto analyst Satoshi Flipper has spotlighted this trend on X, noting its potential as a bullish signal when sellers dwindle and buyers rally near the wedge’s foundation.
#DOGECOIN /usdt DAILY
awaiting the 'monster falling wedge' breakthrough $DOGE 🚀🚀 pic.twitter.com/fOjfFksK0w
— Satoshi Flipper (@SatoshiFlipper) February 26, 2025
The $0.20 support zone is under keen observation. Should Dogecoin hold, bouncebacks to $0.30, $0.37, even $0.45 could be on the horizon. However, a drop below could spell further descent.
Network activity on Dogecoin Data shows the significant drop in new addresses, from 1.29 million in November to 30,815 now, reflecting reduced investor interest.
Lower investor interest tends to lessen buying fervor, echoing the price dip, as a dwindling number of participants often correlates with a downward price trajectory. The stark decrease in new addresses is a foundational reason for the recent price decline.
Macro Issues
Market spirits further dampened by U.S. President Donald Trump's announcement of imposing a 25% tariff on European Union imports. “We've reached a decision and an announcement is imminent. It'll be 25 per cent.” Trump proclaimed during a Cabinet meet, as per the Financial Times.
This tariff announcement stoked concerns of heightened trade frictions between the U.S. and the EU. Global markets, stirred by economic uncertainties, made a noticeable impact on cryptocurrencies, with Bitcoin’s descent dragging down the broader sector, including Dogecoin.
Technical Indicators
There’s a mix of signals regarding Dogecoin's price outlook. Crypto analyst Ali mentions that the TD Sequential indicator is hinting at a buying opportunity on the daily chart, possibly indicating a forthcoming trend reversal.
Trader Tardigrade pointed out There are patterns in DOGE’s action that echo those of the 2017-2018 bull period. If trends hold, Dogecoin might be gearing up for a strong rally. Some hopeful forecasts suggest reaching up to $1.70 in a bullish environment.
Analyst Master Kenobi pointed out that Dogecoin continues to float above a crucial trend line, often acting as a support anchor. Also noted was that Dogecoin’s RSI has dipped to its lowest since March 2023. Such low RSI values may suggest easing selling pressure, readying the stage for a potential comeback.
Yet, not everyone shares the sunny outlook. Carlos Garcia Tapia mused on spotting 'h patterns everywhere,' hinting at potential rates of retracement before further descent. His short-term prediction positions Dogecoin around $0.14, indicating a potential 30% fall from current figures.
Offering a more upbeat take, another analyst, Suzzy, sees a strong bounce from the $0.19-$0.20 support zone as a potential bullish indicator. She remarked, 'Buyers are making a move, and if the next candle turns green, DOGE could be eyeing $0.25+ soon,' she shared on social channels.
Took a glance at $DOGE . Reacting to this strong movement off $0.19-$0.20, it gives off definite bullish signals.
There's a renewed interest from buyers, and if the price sees a green candle next, $DOGE could be heading toward $0.25+ soon.💃 pic.twitter.com/bWPQNLrlzS
— Suzzy DeFi🧞♀️ (@SuzzyDefi) February 26, 2025
Speculation surrounding a potential Dogecoin ETF seems to be rekindling investor intrigue. Recent filings from Grayscale Investments, CoinShares, and WisdomTree suggest that institutional actions might influence future price behaviors.
Looking back at Dogecoin's historical price activities, it often sees corrections before rebounding strongly. Analyst Bithereum points out the current trajectory follows familiar cycles over the years, suggesting this drop might be a temporary phase rather than a lasting trend reversal.
At the time of this content's creation, Dogecoin was valued at $0.20635, hovering just around crucial support levels. Traders keenly anticipate either a substantial breakthrough over the wedge's boundary or a dip below to gauge the next chief price movement.
