Dogecoin is at a crossroads, and the crypto community is buzzing with speculation. After crashing below $0.24 and confirming a descending triangle breakdown, the meme coin darling is teetering on the edge of a potential plunge to $0.20—or could it defy the odds with a jaw-dropping 400% rally? With network activity hitting rock bottom and whale transactions drying up, the bears are growling.
DOGE Dips Below Key Support—Is a Breakdown Inevitable?
Dogecoin (DOGE) has entered a steep decline, breaking below the critical $0.24 level and confirming a descending triangle breakdown. The memecoin is struggling under strong selling pressure, with its price falling another 7% today, reaching a low of $0.2301.
Source: Ali Martinez/XSource: Ali Martinez/X
Analyst Ali Martinez reported that Dogecoin’s whale transactions have dropped to 66, while daily active addresses are now below 60,000—the lowest levels since Oct. 2024. The diminishing activity signals weakening demand, raising fears that DOGE could slip further below $0.20 in the coming days.
A Declining Network Spells Trouble
The broader bearish sentiment in the crypto market has accelerated Dogecoin’s downward trajectory. As on-chain data deteriorates, traders are growing cautious about DOGE’s next move.
Ali Martinez emphasized that Dogecoin’s network engagement is at multi-month lows, a troubling sign for its long-term momentum. The last time network activity was this low, DOGE struggled to sustain an uptrend, leading to more liquidations and increased selling pressure.
Source: CoinglassAdditionally, DOGE futures open interest has dropped by 3.9% to $2.15 billion, according to CoinGlass data. The 24-hour liquidations have surged to $9.23 million, with $8.62 million in long liquidations. While the daily trading volume has increased by 60%, much of it appears to be panic selling rather than accumulation.
Could DOGE Repeat Its Explosive Rallies?
Trader Tardigrade, a market analyst, pointed out that Dogecoin is nearing the completion of its fourth falling wedge pattern—a historically bullish setup.
In previous cycles, DOGE staged massive rallies after similar formations:
First Falling Wedge: An 88% rally. Second Falling Wedge: A 208% breakout. Third Falling Wedge: A 445% surge, sending DOGE near $0.50.If history repeats itself, Dogecoin could be primed for another massive breakout, potentially pushing past $0.50 in the coming months.
DOGE ETF Hype: Could It Trigger a Parabolic Surge?
Adding fuel to speculation, multiple Dogecoin ETF proposals are currently under review by the U.S. Securities and Exchange Commission (SEC). Companies like Grayscale Investments, CoinShares, and WisdomTree have submitted ETF applications, aiming to provide institutional exposure to the meme coin market.
With the SEC acknowledging Grayscale’s filing, investors are closely watching for approval signals. If a DOGE ETF gets the green light, it could catalyze a parabolic price surge, similar to Bitcoin’s rally following the launch of its spot ETFs in Jan. 2024.
So, where’s Dogecoin headed? The bears have a solid case: a confirmed triangle breakdown, plummeting network stats, and $0.20 looming like a dark cloud. But the bulls aren’t backing down—falling wedge patterns and ETF buzz could ignite a rally that’d make 2024’s 445% run look like child’s play. Ali Martinez insists that as long as DOGE holds $0.19, the sky’s the limit, potentially rocketing to $4. Meanwhile, the 4-hour chart’s S1 support at $0.22836 is under siege, and a close below it could spell disaster.
The post Dogecoin Crashes Below $0.24—Plunge to $0.20 or 400% Rally Next? appeared first on Coinchapter.
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