Crypto analyst Crypto Paradise has warned that a Dogecoin trap may be coming, with the meme coin likely to see a crash soon. He pointed to a bearish pattern suggesting DOGE could drop to around $0.08, even after recently reclaiming the $0.10 level.
Analyst Warns of Dogecoin Trap and Imminent Crash
In a TradingView analysis, Crypto Paradise predicted a sharp downward move for Dogecoin, though he noted some might see it as just a healthy pullback. He said the meme coin had formed a classic Volume Spread Analysis pattern, starting with a buying climax followed by a climactic action bar.
Related Reading: Analyst Reveals Accumulation Level for Dogecoin Before It Rallies to $2
The analyst explained that this combination often signals distribution, where institutional investors use aggressive upward spikes to sell their positions while retail traders are excited. Crypto Paradise added that when the crowd feels confident, smart money is already exiting.
Notably, his analysis comes as Dogecoin briefly reclaimed the key $0.10 level today, rallying as Bitcoin broke above $79,000. However, Crypto Paradise’s prediction suggests DOGE is still likely to face another crash, potentially pushing the meme coin to new lows.
DOGE Could Drop to Around $0.08917
Crypto Paradise stated that if bearish momentum in Dogecoin continues, the next major downside target is around $0.08917, and it could be reached sooner than many expect. Commenting on current price action, he noted that DOGE has swept the upper trigger line of the buying climax but failed to hold higher levels, with a candle breaking below the lower trigger line.
Related Reading: The Dogecoin Breakout That Could Send Price Rallying 3,000% to $4
The analyst explained that this is a classic sign that supply is taking over. From a structural perspective, he noted that Dogecoin has clearly respected the descending resistance trendline and failed to break above it. Crypto Paradise remarked that this rejection is likely due to ongoing structural weakness.
At the same time, Crypto Paradise noted that market momentum has shifted to the downside and the overall structure is bearish, further strengthening the case against Dogecoin. In line with this, he declared that DOGE risks moving lower as long as the price stays within the 1-hour order block and fair value gap zone.
The immediate minor support for Dogecoin is around $0.09290, which will act as the first downside target if selling pressure continues. On the other hand, Crypto Paradise stated that this bearish outlook could be invalidated if DOGE manages to break above the key resistance at $0.10338 with a strong momentum candle.
At the time of writing, the Dogecoin price is trading at around $77,700, down in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
Frequently Asked Questions
Here is a list of FAQs about Dogecoins potential price drop written in a natural conversational tone with clear answers
BeginnerLevel Questions
1 Why is everyone saying Dogecoin is about to crash
People are worried because the price has been falling fast trading volume is dropping and theres a lot of negative news about the crypto market When hype dies down and sellers outnumber buyers a crash can happen
2 How low could Dogecoin actually go
No one knows for sure but some analysts think it could drop to 005 or even 003 if the broader crypto market keeps falling In a worstcase scenario it might briefly touch 001 but thats very unlikely unless the whole market collapses
3 Is Dogecoin going to zero
Probably not Dogecoin has a large loyal community and is still accepted by some merchants However it could lose 8090 of its value from its peak which would still leave it worth a few cents
4 Should I sell my Dogecoin right now
That depends on your risk tolerance If you cant afford to lose the money selling to protect your cash might be smart If youre a longterm believer many people choose to HODL through the crash hoping it recovers
5 What causes a Dogecoin crash
Usually a mix of things bad news a general crypto market downturn or people panicselling after a big price drop Dogecoin is especially sensitive to hypewhen the hype ends the price often plummets
AdvancedLevel Questions
6 Is there a floor price for Dogecoin
Technically no But many traders watch the 005 level as a psychological support If it breaks below that the next major support could be 002003 based on past trading patterns Below 001 would be a total collapse
7 Could Dogecoin crash to 0001
Extremely unlikely Dogecoin has a huge supply and a strong community For it to hit 0001 its market cap