- Dogecoin is at risk of a 30% drop to $0.106 after forming a bearish flag pattern and facing strong selling pressure.
- Short-term holders have realized $38 million in losses, intensifying bearish sentiment and threatening further decline.
Dogecoin’s price faces a sharp 30% decline as technical indicators and market sentiment point to a deepening bearish trend. Currently trading near $0.164, DOGE has shown choppy movement over the past week, with signs of a bear flag pattern emerging on the daily chart. This setup typically precedes a continuation of the downtrend, especially if the lower trendline around $0.157 fails to hold.
If Dogecoin slips below this critical support level and then breaks under $0.142, analysts warn that the price could fall as low as $0.106 — its lowest level in 2024. Such a drop would not only mark a significant loss in value but would also place DOGE at risk of slipping below the psychologically important $0.10 mark.
Short-Term Dogecoin Holders Trigger Market Alarm
Adding fuel to the fire, short-term Dogecoin holders recently realized losses of $38 million in just 24 hours, signaling widespread capitulation. According to Santiment’s data, the Network Realized Profit/Loss metric plunged to -38 million, underscoring the severity of the selloff.
Unlike long-term investors who tend to hold through volatility, short-term traders react quickly to negative sentiment, often intensifying downward pressure. Supporting this trend, Glassnode reported that DOGE was the only top 10 crypto to post more losses than gains over the past day — with $132 million in losses compared to a mere $5 million in profits.
Is There a Path to Recovery?
While the dominant narrative remains bearish, there is a chance the downtrend could be invalidated. If the MACD line turns bullish and crosses above the zero mark, and the RSI breaks past the 50 level, a rebound could occur — potentially pushing DOGE towards $0.47, as some analysts speculate amid ETF approval hopes.
However, with current sentiment low and technical indicators flashing red, the road to recovery appears steep. Unless bulls step in to defend the $0.10 level, Dogecoin may soon find itself in dangerous territory.
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