Dogecoin Breaks Key Support – Is a 16% Crash on the Horizon?

Dogecoin (DOGE) has fallen below a critical ascending triangle support level, raising concerns among traders about a potential sharp decline. With bearish signals emerging in the charts and broader market uncertainty, analysts are now questioning whether DOGE could face a 16% drop in the coming days.

Dogecoin’s Breakdown: What Happened?

The ascending triangle pattern is a common bullish formation, often indicating a potential breakout to the upside. However, when the price breaks below the lower trendline, it can signal a trend reversal and increased selling pressure.

Key Technical Factors Driving the Bearish Outlook

1. Loss of Key Support – DOGE broke below the lower boundary of its ascending triangle, invalidating its previous bullish setup.
2. Rising Selling Pressure – Increased volume on the breakdown suggests more traders exiting positions, reinforcing bearish momentum.
3. Bearish RSI and MACD Signals – The Relative Strength Index (RSI) has dipped into bearish territory, while the MACD has crossed downward, indicating further downside risk.

Why a 16% Drop is Possible

Based on historical price movements and technical analysis, breaking down from an ascending triangle often leads to a measured move equal to the triangle’s height. Applying this pattern to Dogecoin’s recent price action suggests a potential 16% decline to the next major support zone.

Potential Support Levels to Watch

• $0.12 – First key support level where buyers may step in.
• $0.10 – Psychological support, historically a strong buying zone.
• $0.08 – Deeper correction level if selling pressure intensifies.

Can DOGE Reverse Course?

Despite the bearish outlook, a few factors could help Dogecoin regain strength:

• Broader market recovery: If Bitcoin and altcoins regain momentum, DOGE could stabilize.
• Strong buying interest at key levels: If bulls defend major support zones, a rebound is possible.
• Catalysts from social media or influencers: Dogecoin has historically responded to hype-driven price surges.

Dogecoin’s break below the ascending triangle has raised concerns about a potential 16% decline, with key support levels now in focus. Traders should watch for confirmation of further downside or signs of a reversal before making major decisions.

Will Dogecoin find support soon, or is a deeper correction inevitable? The next few days could be crucial for its price trajectory.