Dogecoin has taken a hit recently, dropping to a three-month low of $0.20. While it’s seen a slight recovery, experts are worried it might fall further.
A Deep Dive into Dogecoin’s Downturn
The recent price crash was a shock for Dogecoin investors. Although there’s been a bounce back to around $0.20, technical analysis suggests more drops are possible. One analyst, David_Perk on TradingView, points to a strong downtrend, with indicators suggesting Dogecoin could plummet to $0.15.
David_Perk’s analysis, using a 12-hour chart, shows Dogecoin stuck in a descending channel since the start of the year. Several support levels have been broken, adding to the bearish outlook. Fibonacci retracement levels and past price movements support this prediction of at least a 30% drop from current levels.
The $0.15 Prediction: A Realistic Scenario?
Based on historical data and Fibonacci levels, David_Perk believes Dogecoin could fall to $0.15. This would wipe out much of the gains since October 2024 and represent a roughly 68% drop from its peak last December.
Currently trading around $0.21 (a small increase over the last 24 hours, but still down significantly over the past week), Dogecoin needs to break above $0.25 to avoid this scenario. Failing to do so could lead to a further drop below $0.20.
A Glimmer of Hope?
Despite the gloomy outlook, there’s a small positive. On-chain data shows long-term Dogecoin holders are still holding, which could be a good sign.
