Dogecoin Price Squeeze: Two Key Scenarios Ahead

Dogecoin

Crypto analyst Erick Crypto has analyzed the current price squeeze of Dogecoin (DOGE), revealing two potential outcomes for the largest meme coin based on market capitalization.

Key Takeaways

Dogecoin is currently experiencing a price squeeze, characterized by a descending triangle formation and horizontal support at $0.136.
A breakout or breakdown of this price level is predicted, with the potential for high volatility.
If DOGE drops below $0.13, it could see further declines, but a break above the trendline may trigger a relief rally.
Dogecoin has dropped more than 20% in the last month, correlated with Bitcoin's drop below the $100,000 level.
Upcoming interest rate hikes from the Bank of Japan could further impact DOGE and the broader crypto market.

Analyzing Dogecoin's Price Movement

Erick Crypto, a well-known market analyst, has highlighted a significant price squeeze for Dogecoin. According to his insights shared on social media, DOGE is experiencing a downward triangle pattern with strong support at around $0.136. He emphasized that the cryptocurrency is consolidating at its apex, indicating that a breakout or breakdown is imminent, with increased volatility expected for this meme coin.

Crypto analysts warn that if Dogecoin falls below the support level of $0.13, further losses could follow. Conversely, if it breaks the downward trendline, a relief rally may occur. Erick Crypto encourages traders to focus on breakout strategies rather than market noise. This analysis arrives during a downturn in the crypto market, which has significantly affected DOGE's value.

Dogecoin
Source: Chart from Erick Crypto on X

Currently, Dogecoin's price has decreased over 20% in the last month, closely following Bitcoin's decline below the critical psychological barrier of $100,000. Additionally, despite the recent launch of two DOGE ETFs, there has been a lack of traction and interest from institutional investors, as reported by Bitcoinist.

Potential Challenges Ahead

The potential further decline in Dogecoin's price and the broader cryptocurrency market could be exacerbated by anticipated interest rate hikes from the Bank of Japan (BOJ). Such moves could tighten market liquidity and negatively affect crypto assets, including DOGE.

Dogecoin at a Crossroads

Crypto analyst CryptoCeek has observed that Dogecoin finds itself at a critical “meme coin fork-in-the-road.” According to him, if bearish sentiment prevails and pushes DOGE below $0.13, it could revisit $0.10, an area where buyers traditionally have entered aggressively. Conversely, if Dogecoin manages to reclaim the 20-day Exponential Moving Average (EMA) near $0.14, it could signal a bear trap, suggesting a potential surge toward $0.19 for what CryptoCeek describes as a classic DOGE squeeze.

Additionally, analyst Master pointed out that the price range between $0.10 and $0.12 appears to be a plausible scenario for Dogecoin. He believes the base case is a sideways trading trend for DOGE until 2028, potentially aligning with the next bull run. Nevertheless, as highlighted by CryptoCeek, there is still a likelihood of a bounce off the $0.10 mark, with buyers expected to accumulate more coins at that price level.

Dogecoin
DOGE trading at $0.12 on the 1D chart | Source: DOGEUSDT on Tradingview.com