Dogecoin Faces Potential Losses as Price Tests Critical Support: Analyst Warns of a Possible 37% Drop

Despite some market watchers maintaining optimism regarding the long-term outlook for Dogecoin (DOGE), an analyst has identified a bearish continuation pattern in the short-term chart, signaling that another significant correction may be looming for this meme coin.

Key Takeaways:

Dogecoin is currently testing a critical support level around $0.088, with warnings of potential further declines.
Analysts suggest a possible 37% drop to approximately $0.060 if the downward trend continues.
Despite short-term bearish sentiments, some analysts remain optimistic about Dogecoin's long-term macro outlook, citing a bullish pennant formation.
Historical price patterns indicate potential conditions for a major recovery rally if specific resistance levels are surpassed.

Dogecoin Analysis Image

Could Dogecoin’s Lowest Price Drop Even Further?

On Monday, Dogecoin experienced a 3% bounce back from Sunday’s lows, repositioning itself above $0.091, a level that was lost over the weekend due to heightened volatility caused by the conflict in the Middle East.

Over the past two weeks, the cryptocurrency has traded within a range between $0.086 and $0.100, reaching a weekly high of $0.104 last Wednesday, only to erase those gains and slide back towards local lows, mirroring the overall market trend.

Market expert Ali Martinez noted that the cryptocurrency is consolidating within a descending triangle since mid-January; this setup hints that a continuation of the downward trend could be imminent.

Dogecoin $DOGE is consolidating in a triangle, setting up for a 37% price move. pic.twitter.com/q0fzcXwLny
— Ali Charts (@alicharts) March 8, 2026

The chart shows that DOGE has established a support around $0.088, which indicates a nearly 37% drop from the upper part of the pattern. The resistance from the descending trend line currently stands at $0.097.

According to the analyst, the meme coin is gearing up for a downward move of 37%, with the potential target around $0.060 if the price drops below the established support level.

Previously, the analyst warned that Dogecoin could find its next significant support level near this price point if selling pressure continues. Notably, the $0.060 level has historically served as both macro resistance and support, marking the bear market low in 2022 and a critical bounce point during the market recovery at the end of 2023.

Analysts Remain Optimistic About DOGE’s Macro Chart

Even with weak performance and bearish price predictions in the short term, other analysts have expressed a more encouraging outlook for Dogecoin in the medium to long term.

Trader Tardigrade has suggested that investors view the DOGE chart with a broader perspective, stating that the macro outlook for the meme coin appears "incredibly bullish." In a post on X, the analyst highlighted a large bullish pennant on the monthly chart, indicating that a significant breakout is likely soon.

$Doge/monthly #Dogecoin appears a giant Bullish Pennant on the Monthly chart 🔥
Zoom out — the bigger picture is insanely bullish.
This pattern has been forming for years, and it's holding well on the support last month. When this breaks to the upside, expect a massive surge 🚀… pic.twitter.com/qWEwZib8El
— Trader Tardigrade (@TATrader_Alan) March 8, 2026

According to the chart, this pattern has been developing since the breakout in 2021; the cryptocurrency has tested and held the lower boundary as support twice over the past five years, triggering strong rebounds after each test.

Currently, Dogecoin has tested this level for the third time, managing to close February above the lower boundary. If history repeats itself, conditions may be set for a new recovery rally. “When the upside breakout happens, expect a massive surge. The setup is ready.”

Meanwhile, analyst Bitcoinsensus speculated that the meme coin might be poised for an impressive rally based on its cyclical performance. As detailed, DOGE's price action has been following "mini cycles" since its 2022 low, resulting in increasingly significant rallies.

This structure consists of accumulation phases, markup (rising phase), and pullbacks, generating rallies of 190% and 480%, respectively, at the beginning and end of 2024.

Now, as Dogecoin continues its third accumulation phase, a breakout towards the $0.75 area could occur in the coming months, provided the token surpasses the annual descending trendline and the "mini cycle" pattern repeats once again.

Dogecoin Weekly Performance Performance of Dogecoin on the weekly chart. Source: DOGEUSDT on TradingView