Dogecoin is currently navigating a turbulent market, grappling with significant price declines that challenge its memecoin resilience. Despite recent losses, the crypto asset finds itself at a crossroads, with some analysts predicting a bottom while market indicators paint a decidedly bearish picture.
The Bullish Argument for a Dogecoin Bottom
Following a sharp rejection at $0.15 and a subsequent drop into a descending channel, Dogecoin dipped to $0.08 before a modest rebound to $0.095. Despite these prolonged losses, a notable crypto analyst posits that DOGE has finally touched the lower boundary of its long-term ascending channel, suggesting it may have reached its bottom with no further downside. This optimistic outlook is underpinned by historical data, with the analyst recalling Dogecoin's explosive growth in previous cycles—a 9,200% surge in 2017 and a 26,485% increase in the subsequent cycle. Based on these precedents, a dip below $0.1 is viewed as a definitive bottom, potentially paving the way for a rebound that could see DOGE ascend towards $0.3.
Overwhelming Bearish Market Realities
Contrasting these bullish long-term projections, Dogecoin's immediate market structure remains overwhelmingly bearish. The memecoin is firmly entrenched within a supply zone around $0.09, facing intense selling pressure that has repeatedly pushed prices lower. Data from market indicators underscores this dominance of sellers, with seller volume significantly outweighing buyer volume (5.4 billion vs. 2.8 billion) and buyers failing to displace sellers for eleven consecutive days. Momentum indicators further reinforce this bearish sentiment: the Relative Strength Index (RSI) is deep in bearish territory at 31, signaling strong sell-driven momentum, and the Directional Movement Index (DMI) at 6.3 validates this trend's strength. Consequently, Dogecoin remains in a weakened position, facing a high likelihood of further losses. For the bullish analyst's forecast to materialize, a broader market recovery and DOGE reclaiming its demand zone around $0.15 would be necessary; otherwise, the memecoin is likely to hover around $0.09 with $0.1 acting as a firm upper resistance.
