Due to the overall downward trend in the Cryptos market, Dogecoin's recent trend continues to be under pressure. After initially falling to $0.2, the bulls tried to bottom up and rebound, but in the sluggish market in the past quarter, the price eventually fell below the key support of $0.15, and is still in a weak state of fluctuation.
Although current price performance has raised concerns in the market, Cryptos Analyst Weslard pointed out that a more severe adjustment may not be yet to come.
Its analysis shows that the Dogecoin trend chart has formed a corrective structure — a Put flag, which indicates that the market is still at risk of falling in the future. As this technical pattern gradually became apparent, Wesrad reminded investors to be alert and explained why Dogecoin may experience another sharp pullback during the rebound process.
Depth adjustment after rebound or sinking
Dogecoin's Put flag is generally seen as a sign of a continuation of the trend. This pattern has previously triggered a sharp drop in Dogecoin prices. Market sentiment is still lackluster, suggesting that downward pressure may continue.
However, it was also pointed out that the current Dogecoin price is significantly lower than the previous breakout zone, so meme coins may first experience a wave of technical rebound. If a rebound takes shape, the price may first test $0.12 downward and seek support above $0.118. Once this stabilizes, Dogecoin is expected to gradually recover to around $0.2.
However, after predicting the completion of this round of rebound, the market may face a deeper decline. The trend chart shows that starting around $0.2, Dogecoin may fall by about 70% again, targeting the $0.05 line, which also means that the price may return to its two-year low.
“Currently, we need to pay close attention to the area around $0.12. This is not only a Put downward target, but also coincides with earlier structural support and breakthroughs,” he said. “This region may become a 'backtest sell-off area', triggering a new round of decline.”
In the current market environment, Analyst generally believe that Dogecoin will maintain a downward trend. The future trend largely depends on the overall development of the Cryptos market, and as far as the present is concerned, there is still a high possibility that the market will decline further.
