Dogecoin's price has lost its momentum, struggling to maintain its bullish trend. After failing to sustain its upward trajectory, Dogecoin is now trading within a consolidation range. The question now is whether Dogecoin's price can hold its support or if a crash is on the horizon.
Dogecoin Price Faces Consolidation
After a period of strong upward momentum, Dogecoin's price has entered a phase of consolidation. Instead of continuing its uptrend, DOGE is now stuck in a range between $0.48 and $0.37. This consolidation shows that buyers are losing control, and sellers are gaining the upper hand.
Consolidation is a natural part of market cycles, but it’s also a warning sign that the trend could be changing. Dogecoin’s inability to break above $0.48 and its repeated tests of the $0.37 support suggest that selling pressure is increasing. If $0.37 breaks, it could signal the start of a larger downtrend.
Here’s why this matters:
- Sideways Movement: When a cryptocurrency trades sideways for an extended period, it often precedes a larger move — either up or down.
- Bearish Sentiment: Since Dogecoin is trading closer to the lower end of its range ($0.37), it signals that sellers are more active than buyers.
- Break of Key Moving Averages: Dogecoin’s price has fallen below its 21-day Simple Moving Average (SMA 21), which is typically a bearish signal for technical analysts.
If Dogecoin's price remains below the 21-day SMA, it’s likely to continue its downtrend. Traders are now focused on whether $0.37 can hold as support.
DOGE/USD 4-hours chart - TradingView
What Could Cause Dogecoin's Price to Crash?
There are several key factors that could push Dogecoin's price even lower. Here’s a look at the most important ones:
1️⃣ Bitcoin’s Impact
Bitcoin is the leader of the crypto market, and when Bitcoin struggles, it affects all other cryptocurrencies. Bitcoin is currently facing a critical resistance at $104,000. If it fails to break this level, analysts predict a potential Bitcoin drop to $100,000 or lower, which would impact the broader market.
Since altcoins like Dogecoin tend to follow Bitcoin’s price movements, a Bitcoin crash could trigger a strong sell-off in Dogecoin. This is especially true for memecoins, which are historically more volatile than larger-cap assets like Ethereum or Cardano.
2️⃣ Altcoin Sell-Offs
In bearish market conditions, altcoins are often hit harder than Bitcoin. Since Dogecoin is a memecoin, it is even more vulnerable to steep declines. During bear markets, investors tend to sell riskier assets first, and memecoins are often the first to go.
3️⃣ Market Sentiment Shift
Market sentiment plays a huge role in Dogecoin’s price movement. Unlike Bitcoin and Ethereum, Dogecoin relies heavily on hype, community support, and news cycles. When sentiment shifts negative, Dogecoin's price tends to drop much faster than other top cryptocurrencies.
Dogecoin Price Prediction before 2025: Will Dogecoin Crash?
Where could Dogecoin's price go next? Analysts have identified several key support and resistance levels to watch, as well as a bearish scenario that could see DOGE fall to $0.35 or lower.
DOGE/USD 4-hours chart - TradingView
Current Dogecoin Price
- Current Price: ~$0.37
- 21-Day SMA: Price has fallen below the 21-day Simple Moving Average, which is typically seen as a bearish signal.
- Range: Dogecoin is trading in a range between $0.48 and $0.37.
Price Levels to Watch
- $0.48 – Key resistance. If Dogecoin can break above this level, it could reignite bullish momentum.
- $0.37 – Key support. If this level fails, the next downside target is $0.35.
- $0.35 – Major support. If this support level fails, Dogecoin could enter a much larger downtrend.
Bearish Scenario
- If Bitcoin fails to break $104K, Dogecoin could face a large correction.
- If Dogecoin breaks below $0.37, it would signal further downside.
- The next major support is at $0.35, but if selling pressure increases, Dogecoin could drop even lower.
Bullish Scenario
- For the bulls to regain control, Dogecoin must reclaim the 21-day SMA.
- A break above $0.48 would signal renewed bullish momentum, with the possibility of a larger uptrend.
Will Dogecoin Drop to $0.35?
The big question is whether Dogecoin's price will fall to $0.35 or lower. If Bitcoin fails to stay above $100K, a broader market correction could trigger further declines in Dogecoin.
Here’s why:
- Memecoins fall harder in bear markets. If Bitcoin experiences a sharp drop, memecoins like Dogecoin tend to experience even larger percentage declines.
- Loss of Key Support. If Dogecoin breaks below the $0.37 support, there is little to stop it from dropping to $0.35. This level is considered a critical support level, but if it fails, further downside is possible.
- Market Sentiment. If the broader crypto market turns bearish, Dogecoin will likely face increased selling pressure, which could push prices lower.
DOGE/USD 45-mins chart - TradingView
Most analysts agree that if Bitcoin crashes below $100K, Dogecoin will be one of the first altcoins to experience larger declines. For now, all eyes are on the $0.37 support and Bitcoin's ability to reclaim $104K.
