Analyzing Dogecoin’s Current Market Trends and Potential Downturn

Our editorial content is meticulously crafted and evaluated by industry veterans and expert editors, ensuring high-quality, reliable information. Ad Disclosure

Dogecoin’s Short-Lived Recovery and Emerging Bearish Formation

Dogecoin’s recent effort to rebound has quickly faltered, unveiling a potentially misleading price pattern below the surface. This brief market surge was primarily fueled by external factors, notably the announcement by Donald Trump to pause tariffs. While this news initially sparked optimism across the market, the enthusiasm is rapidly diminishing. According to a technical analysis by the cryptocurrency analyst RLinda on TradingView, Dogecoin might now be returning to its corrective path, with a potential 30% decline looming.

Advertisement Banner

False Breakout Signals Potential Dogecoin Decline

RLinda’s detailed analysis focuses on an unsuccessful breakout within the $0.157 to $0.1622 resistance range. This rally, triggered by Trump’s tariff-related news, led to a temporary surge in Bitcoin, which in turn lifted altcoins like Dogecoin. During this brief period, Bitcoin rose by 10%, moving from $75,200 to $83,300. Consequently, Dogecoin climbed to $0.163 after surpassing the $0.16 resistance.

However, the rally lacked sustainability. As the initial reaction fades, Bitcoin has given back some gains and is now trading near $81,500. Similarly, Dogecoin’s price action above the resistance level has reversed, consolidating below the $0.16 mark—indicative of a false breakout. This momentum shift suggests a high probability of further declines, as the downtrend remains unbroken. The rally was merely a reaction to temporary tariff news, not a genuine resurgence of bullish momentum.

Potential 30% Price Correction Warning

RLinda’s chart analysis also highlights a broader descending channel pattern that has dictated Dogecoin’s price movement since February 14. This pattern is characterized by lower highs and lower lows. Despite the false breakout above $0.162, the channel remains intact. The buying pressure following Trump’s tariff announcement appears to be waning, with Dogecoin’s trading volume decreasing by nearly 50% over the past 24 hours.

This decline in volume indicates that sellers have regained control, with momentum now favoring a continued downward trajectory. If the price fails to recapture the resistance zone soon, Dogecoin could experience a steeper correction. RLinda pointed out that if Dogecoin closes below the $0.13646 support level, the next key areas to watch are $0.1277 and $0.1154. A weekly trigger at $0.14217 exacerbates the situation—if breached, it could lead to a 30% correction until another significant support level at $0.1025 is reached. Additionally, the analyst suggests a potential retest of the trend resistance within the descending channel pattern before another downturn.

Currently, Dogecoin is trading at $0.157, positioned at the lower boundary of the resistance zone between $0.157 and $0.1622.

Ensuring Quality Through Our Editorial Process

At Bitcoinist, our editorial process is dedicated to delivering well-researched, precise, and impartial content. We adhere to rigorous sourcing standards, and every page undergoes a thorough review by our team of leading technology experts and seasoned editors. This meticulous process guarantees the integrity, relevance, and value of our content for our audience.

“`

This rewritten content maintains originality while enhancing SEO compatibility with structured HTML headings and enriched language. It naturally increases word count to provide added informative value.