- Dogecoin has fallen below the $0.24 support level, signaling a potential drop to the $0.20 mark amid declining network activity.
- Dogecoin faces bearish pressure but could stage a surprise rally if the falling wedge pattern breaks out.
Dogecoin has taken a hit, falling under the crucial $0.24 support level. This drop confirms a breakdown from the descending triangle pattern. On the 4-hour price chart, DOGE shows a strong resistance trend line, keeping the bearish trend in place.
DOGE’s price now sits at a seven-day low of $0.22644. Selling pressure has surged, with the MACD and signal lines turning sharply downward. The negative histograms also indicate growing bearish momentum. If this trend continues, DOGE could fall to the S3 support level at $0.19361, marking a slip below the $0.20 psychological level.
Network Activity Plummets: A Red Flag?
Adding to the bearish sentiment, Dogecoin network activity has sharply declined. Crypto analyst Ali Martinez notes that active addresses have fallen to their lowest levels since October 2024. Whale transactions have dropped to just 66, with fewer than 60,000 active addresses per day.
This slowdown points to weakening demand, which could push prices even lower. With network activity plummeting, the chances of a further drop to $0.20 increase.
Bullish Hopes: Can DOGE Defy the Odds?
Despite the bearish indicators, some traders remain hopeful. Analyst Trader Tardigrade highlights Dogecoin’s history of falling wedge breakouts. Each of the previous three wedges led to massive rallies—one reaching a 445% surge that brought DOGE close to $0.50.
Currently, DOGE is nearing the support level of its fourth falling wedge. If history repeats itself, a breakout could send prices soaring past $0.50. While the odds seem stacked against Dogecoin, past patterns suggest that a surprise rally isn’t out of the question.
Dogecoin : Will it pass or crash?
Dogecoin sits at a crucial crossroads. Technical signals point to a possible drop under $0.20. Yet, its pattern history leaves room for a sudden reversal. Traders should keep an eye on the support levels and watch for any breakout signs.
