Following a recent market downturn, Dogecoin is trying to maintain a key support level, which could pave the way for a rebound. However, some analysts warn that the cryptocurrency’s decline may not be over, with a potential drop to lower prices still possible.
Dogecoin Chart Indicates Short-Term Caution
On Friday, Dogecoin fell another 4.2% intraday from the $0.126 area amid ongoing market swings. The coin has now retraced more than 50% from its early October peak, having lost several important support zones over the past two months.
After falling below the $0.135 level nearly two weeks ago, DOGE has been trading within a $0.120-$0.135 range, unable to break above the top of this range despite several attempts. The leading memecoin is now attempting to hold the crucial $0.120 support to prevent further losses. Consequently, some market observers are advising caution during the final week of the year.
In a social media post, analyst More Crypto Online stated that Dogecoin “is still a falling knife,” suggesting its corrective move may not be finished. “There’s no evidence that wave B has bottomed,” he explained, indicating a potential 20% drop toward the next key supports at $0.096 and $0.08. According to the post, “Caution is recommended until the price shows a first micro 5-wave move to the upside.”
Similarly, analyst Crypto Jobs cautioned investors to remain wary, noting that Dogecoin lacks a bullish reversal structure and shows weak buying volume compared to many other altcoins. He explained that momentum remains bearish despite holding the key $0.12 level, adding that as long as DOGE stays below the $0.14-$0.15 area, bulls will not be in control and the bearish setup and downtrend will remain intact.
“There’s no buy pressure at the moment, without volume. No bull structure… Under the main downtrend & channel, seeing another dump toward the $0.100 – $0.09500 lower support looks realistic. A sideways phase is ongoing in the short term [H4 outlook]. We may also see some bullish move before a possible next wave downward.”
Is a DOGE Price Breakdown Imminent?
Market watcher BitGuru believes DOGE’s deep correction may be complete. He pointed out that the cryptocurrency is currently in a major demand zone between $0.120 and $0.130, where liquidity has already been swept. Based on this, he forecasts that reclaiming the late November price levels could set the stage for a recovery rally toward the $0.18 resistance level.
Conversely, failure to hold current levels would suggest Dogecoin is entering a prolonged consolidation phase.
Meanwhile, Trader Tardigrade highlighted that DOGE’s price has reached the target of its previous symmetrical triangle pattern after breaking down from that formation earlier this month. Now, Dogecoin is forming a new pattern and “searching for a new trend,” he added.
According to this trader, DOGE has been forming another symmetrical triangle pattern on the H4 chart over the past two weeks, which could resolve with a 15% move in either direction. Notably, Friday’s pullback sent the cryptocurrency below the pattern’s lower boundary around $0.123, signaling that a drop toward the $0.10-$0.11 area is possible if the price doesn’t bounce back soon.
As of this writing, Dogecoin is trading at $0.122, down 7.3% over the past week.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Dogecoins Triangle Pattern Breaks Down Signaling Potential 15 Drop Is Caution Warranted designed to be clear and helpful for all levels of investors
Beginner Definition Questions
1 What is a triangle pattern in crypto trading
A triangle pattern is a common chart formation where the price moves between two converging trendlines creating a triangle shape It shows a period of consolidation before the price typically makes a significant move in one direction
2 What does it mean for the pattern to break down
A breakdown means the price has moved decisively below the lower support trendline of the triangle This is generally interpreted by technical analysts as a signal that selling pressure has won and the price is likely to continue moving downward
3 What is a 15 drop referring to
This is a potential price target derived from the technical pattern Analysts measure the height of the triangle at its widest point and project that distance downward from the point of the breakdown to estimate how far the price might fall
4 Im new to this Should I be worried about my DOGE
Technical patterns like this are one tool for assessing probability not certainty It suggests increased risk of a downward move If you are a longterm holder shortterm patterns may be less relevant If you are trading shortterm its a signal to be more cautious and review your risk management
Analysis Interpretation Questions
5 Is this pattern a guaranteed prediction of a 15 drop
No it is not a guarantee Technical analysis identifies probabilities and potential scenarios The 15 figure is a common measuring technique but external news overall market sentiment or a surge in buying volume could invalidate the signal
6 Why does a breakdown signal a potential drop
The triangle represents a battle between buyers and sellers with neither side winning A breakdown below support indicates that sellers have overwhelmed buyers This often triggers stoploss orders and can lead to panic selling fueling a further decline
7 What other factors should I consider besides this pattern
Always look at the bigger picture overall cryptocurrency market trends any major Dogecoinrelated news trading volume a