Analysts Optimistic Despite Dogecoin’s 20% Drop
In the past 24 hours, Dogecoin has plummeted by over 20%, amidst a broader decline in the cryptocurrency market. However, renowned analysts urge investors not to lose hope, as the price remains above the “Bull Market Line.” They emphasize that if the market recovers, Dogecoin could potentially regain its upward momentum.
Analysts Highlight the Importance of the “Bull Market Line”
According to a report from NewsBTC, cryptocurrency analyst Kevin Capital (Twitter handle: @Kev_Capital_TA) explains that while Dogecoin has seen significant declines, it still holds above a crucial support level known as the Bull Market Line. This could potentially encourage buying activity if the “overall market” begins to recover.
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“The situation for Dogecoin hasn’t changed much since my last post on March 22, 2025. Most long-term indicators have reset, and we remain supported by the Bull Market Line. My perspective may differ from the majority on X, but we don’t play into others’ fears. As long as Bitcoin remains favorable and economic data is positive, I believe Dogecoin has a chance to rise again in the coming weeks,” said Kevin Capital.
He refers back to a detailed technical analysis he posted on March 22, 2025, where he identified the $0.139 level as the “final support of the bull market.” He cautioned that if the weekly closing price falls below this long-standing downtrend resistance, it could signal a dramatic shift in market sentiment.
Dogecoin and the Overall Market Liquidity
Kevin has examined the macroeconomic landscape, comparing global liquidity indices with Dogecoin’s price chart. He states, “If we observe Dogecoin alongside global liquidity indices, we’re at a fascinating point. In Dogecoin’s logarithmic chart, it’s testing what has been the resistance point throughout the entire bear market from May 2021 to October 2024.”
The reference to these bear market periods highlights Dogecoin’s price movements between its 2021 peak and subsequent declines. Kevin further explains that this area corresponds with the “macro .382” level at $0.142, measured from the bull market peak to the bear market low, marking a critical turning point for potential price appreciation if the broader market recovers.
He emphasizes that the coin’s price trajectory is largely tied to overall market liquidity. When global financial markets slow down, or at the very least, when the Fed pauses interest rate hikes, liquidity might start returning. From his perspective, a gradual easing (slowing rate hikes) could help facilitate recovery in both market liquidity and Dogecoin’s price.
“Historically, I believe it might break through here if past events repeat. Investing in Dogecoin at this point presents a very favorable risk-to-reward ratio for both long-term holding and short-term (swing) trading, as the potential gains outweigh the risks,” he added. However, he cautioned that if Dogecoin fails to sustain the $0.139 level and cannot recover sustainably, this could invalidate the current price forecast or trend outlook.
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