Dogecoin Faces Uncertainty: Is a 15% Move Likely? Time to Exercise Caution?

Dogecoin is struggling to maintain support amid market volatility. Some analysts suggest that the downward trend may continue, potentially leading to lower price levels. As the year ends, caution is advised for investors as the future direction of Dogecoin remains uncertain.

Key Takeaways

Dogecoin is currently trading around $0.122, down 7.3% weekly.
The cryptocurrency has lost significant ground, falling over 50% from October highs.
Analysts recommend caution as DOGE appears stuck in a bearish trend without strong buying momentum.
A breakdown below its support level could lead to potential price drops to $0.096 or lower.

Dogecoin, DOGE

Dogecoin's Technical Analysis: A Call for Caution

Recently, Dogecoin experienced a 4.2% decline, falling from the $0.126 price point amid ongoing market fluctuations. This fall marks a significant retracement of over 50% from its early October highs, causing the cryptocurrency to breach multiple key support levels in the past few months.

Since losing the vital $0.135 mark two weeks ago, Dogecoin has been fluctuating between $0.120 and $0.135 but has struggled to break through the high of this range. At this point, Dogecoin is trying to hold onto the crucial support level at $0.120 to avoid further declines.

Many market analysts are recommending a cautious approach as the year wraps up. Analyst More Crypto Online noted on social media that Dogecoin “is still a falling knife,” indicating that the current downward trend may not be finished.

Dogecoin

According to this analysis, if the corrective wave hasn’t reached its bottom yet, Dogecoin could drop by another 20%, targeting lower support levels at $0.096 and $0.08. He emphasized, “Caution is recommended until the price shows a first micro 5-wave move to the upside.”

Another analyst, Crypto Jobs, echoed these concerns, warning that investors should tread carefully as Dogecoin does not exhibit any bullish reversal indicators and is facing weak buying volumes compared to other altcoins. He stated that the current bearish momentum would persist as long as DOGE remains under the $0.14-$0.15 range, maintaining its downtrend.

"There’s no buying pressure at the moment, and without volume, there’s no bullish structure. Given the main downtrend and channel, another drop towards support around $0.100 to $0.095 seems realistic," he explained. "A sideways phase is currently ongoing, although we may see some bullish movement before the next downward wave."

Is a Price Breakdown for DOGE on the Horizon?

Market analyst BitGuru believes that Dogecoin’s deep correction may be coming to an end. He noted that the cryptocurrency currently resides in a significant demand zone between $0.120 and $0.130, where liquidity has previously been absorbed.

If Dogecoin can reclaim its November levels, it could pave the way for a recovery rally toward the $0.18 resistance. However, failing to maintain the current price levels may signal a prolonged consolidation phase for the cryptocurrency.

Trader Tardigrade pointed out that Dogecoin's price had reached its target following a prior symmetrical triangle breakdown earlier this month. He mentioned that a new pattern is emerging, with Dogecoin forming another symmetrical triangle over the past two weeks that could lead to a significant 15% movement in either direction.

Notably, Friday's market pullback pushed Dogecoin beneath the pattern's lower boundary, currently around $0.123, indicating a possible decline to the $0.10-$0.11 range if the price does not bounce back soon.

At the time of writing, Dogecoin is trading at $0.122, reflecting a 7.3% loss on the weekly chart.

Dogecoin, DOGE, DOGEUSDT