Dogecoin could fall 20% to $0.27 before a big rebound

As bearish momentum in the crypto market intensifies, Dogecoin is at risk of breaking its long-held support at $0.30.

Today alone, Dogecoin (DOGE) lost 9% of its value, dropping from $0.3452 to $0.315 at press time. This bearish move follows Bitcoin’s recent test of the $90,000 level. Specifically, BTC reached $90,183, with constant threats of falling to even lower levels.

Dogecoin, being a meme-themed crypto asset, is a major casualty of Bitcoin’s bearish volatility. As the meme coin fell to $0.3100, erasing all gains since the start of the year, one analyst warned of even greater downside potential.

Dogecoin could fall 20% to $0.27

In a tweetanalyst Ali Martinez revealed that Dogecoin is breaking out of a bearish flag pattern and the likely target for this breakdown is the $0.27 price range. The last time Dogecoin traded at this price level was on December 20, 2024.

Interestingly, when Martinez called on Sunday morning, Dogecoin was trading at $0.3350. At press time, the bearish outlook is quickly taking shape, with Dogecoin dangerously close to losing the $0.30 price level, which it has held above since the start of the new year.

Remarkably, a separate analysis of Dogecoin by The Crypto Basic further confirms the bearish outlook put forward by Martinez.

The analysis highlighted that Dogecoin technical indicators show a bearish alignment. After crossing the 23.60% Fibonacci level at $0.31385, Dogecoin is likely to fall to $0.265. As a reminder, from Dogecoin’s intraday high of $0.3452, reaching these lows would represent a loss of over 20%.

At the same time, the analysis noted the possibility of a double reversal if Dogecoin sustains above the Fibonacci level. More specifically, he highlighted the possibility of a bounce at $0.40.

Corrections are bullish

However, the disclosure of Dogecoin’s downside risk sparked unease among traders who were hopeful that Dogecoin was on track to reach the $1 price level.

A community member lamented that just a few days ago, Martinez predicted a rally to $2. While expressing frustration with the bearish prediction, the individual hurled insults at the analyst for the call.

Martinez responded that corrections, in the long term, are bullish because they provide another window to buy at a lower price before the next rebound. He advised those who cannot bear the market volatility to avoid engaging in crypto assets.

Bullish factors for Dogecoin promising an 11X rebound

Despite the ongoing short-term correction, some market commentators believe that Dogecoin could soon hold an 11X rally. They highlight the historical trend where Dogecoin soared aggressively after the US presidential inaugurations. A similar event will take place in a week, and some see this as a bullish sign for Dogecoin.