Dogecoin Risks More Pain As Price Retests Critical Support – Analyst Warns Of 37% Breakdown

While some market observers remain optimistic about Dogecoin (DOGE)’s long-term prospects, an analyst has identified a bearish continuation pattern in the short-term chart that could lead to another major correction for the memecoin.

On Monday, Dogecoin bounced 3% from Sunday’s lows and reclaimed the $0.091 level, which had been lost over the weekend due to recent market volatility triggered by the Middle East conflict.

The cryptocurrency has traded between $0.086-$0.100 over the past two weeks, reaching an intraweek high of $0.104 last Wednesday before erasing the bounce and plunging to its local lows alongside the rest of the market.

DOGE established a floor around the $0.088 level, the chart shows, representing a nearly 37% decline from the pattern’s top. Meanwhile, the descending trendline resistance is currently around $0.097.

According to the analyst, the memecoin is setting up for a 37% move to the downside, targeting the $0.060 area if the price falls below the pattern’s base and loses its support role.

Despite weak performance and bearish price forecasts, other market observers expressed a more optimistic outlook for Dogecoin in the mid- and long-term.

According to the chart, the pattern has been forming since the 2021 breakout, and the cryptocurrency has retested and held the lower boundary as support twice over the past five years, leading to a major rebound after each retest.

Now, Dogecoin has retested this level a third time, managing a monthly close about the lower boundary in February. This has set up a potential price recovery rally if history repeats. “When this breaks to the upside, expect a massive surge. The setup is ready.”

Now, as Dogecoin continues to accumulate for the third time, it could see a breakout toward the $0.75 area in the coming months if it breaks out of its one-year downtrend line and the “mini cycles” pattern repeats.