Is Dogecoin at its Bottom? Analyst Predicts Extended Downtrend for DOGE

As Dogecoin (DOGE) tests a significant multi-year support level, some analysts are expressing a bearish sentiment for the largest memecoin by market cap, cautioning that the bottom may not have been reached yet.

Key Takeaways

Dogecoin is currently retesting important multi-year support levels.
Analyst Rekt Capital warns that DOGE may not have reached its bottom, suggesting further price corrections are likely.
Contrasting views exist, with Trader Tardigrade predicting that Dogecoin could have already found its bottom, setting the stage for a future rally.
Historical patterns indicate that Dogecoin could see significant price movements based on its past performance while testing these support levels.

As the crypto market evolves, investors should remain vigilant and informed about price actions and analyst trends surrounding Dogecoin and other cryptocurrencies.

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Dogecoin's Price Movement

On Thursday, Dogecoin retraced much of its early-week gains, once again approaching the $0.090 mark. Market analyst Rekt Capital highlighted this trend, stating that DOGE's price correction could still have further to go.

According to Rekt, the leading memecoin dropped below its long-standing upward trend line in November, marking the end of a multi-year rise that had been in place since early 2023. This signals the start of a macro downtrend that began after reaching a peak of $0.484 during the late 2024 bull market. Historically, Rekt emphasizes, Dogecoin does not retest the macro downtrend line until it is set to break out of it.

Dogecoin

Rekt Capital points out that Dogecoin is now positioned at a critical support zone that once acted as resistance prior to turning into support earlier this year. He predicts that, based on previous bear market trends, Dogecoin may lose this support over time, although it could see some temporary rebounds during this range.

“If history serves as a guide, the price is likely to fall short of the Macro Downtrend and could be rejected from the Range High resistance,” he noted. The likelihood of a brief relief rally exists as long as the current support level holds; however, Rekt warns that this opportunity may diminish in the coming months before reaching significantly lower levels.

An Alternative Perspective on DOGE’s Price

In contrast to the bearish forecasts, other analysts are offering a more positive outlook for Dogecoin. Trader Tardigrade has recently suggested that DOGE might have already found its bottom and could be gearing up for its next upward trend.

According to Tardigrade, Dogecoin is retesting a significant historical support level for the third time. This trendline, which has remained intact for nearly a decade, has previously led to major price surges. For example, after its first touch in 2017, Dogecoin experienced a dramatic rally reaching its 2018 all-time high (ATH) of $0.017. A subsequent retest in 2021 resulted in another massive increase towards its current ATH of $0.731.

Now, with Dogecoin once again testing this crucial area, Tardigrade believes it could start to recover in the short- to mid-term before potentially launching towards new highs in the long term, provided it follows its historical trajectory.

He also argues that the overall macro structure for DOGE remains strong, despite short-term fluctuations. Last week, Tardigrade pointed out that the memecoin’s performance leading up to each of its ATHs has been consistent, stating, "DOGE makes its own rules."

Highlighting the current market conditions, he stressed that Dogecoin appears to be nearing the end of a falling wedge pattern, typically seen before significant price increases in prior rallies, and considers this a “prime accumulation window” ahead of a potential price surge.

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