Affected by the overall downward pressure of the cryptocurrency market, Dogecoin's recent trend continues to be under pressure. After a brief resistance near the support level of $0.2, DOGE ultimately failed to hold the $0.15 mark and is currently still hovering at a low level.
Although prices have shown signs of fatigue, the most severe test may not have arrived yet. Analysis indicates that a bearish flag corrective structure has formed on the Dogecoin price chart, which usually suggests further declines may occur subsequently.
📉 The bearish flag indicates risk
The currently formed bearish flag structure often signals the continuation of a downtrend. The appearance of this pattern indicates that market sentiment remains pessimistic, and bearish forces have not yet been fully released.
🔁 Rebound first, then drop?
Since the price is significantly below the previous breakout area, DOGE may first experience a technical rebound. If the rebound is established, the price may first drop to around $0.12 to seek support and form a short-term bottom above $0.118, then test the $0.2 resistance level upwards.
⚠️ Beware of further deep corrections
After this wave of rebound is completed, Dogecoin may face a larger decline. Its chart analysis shows that starting from around $0.2, DOGE could potentially drop again by about 70%, targeting the $0.05 area—if true, it will set a new low in nearly two years.
"Currently, closely monitor whether the price falls back to around $0.12, as this position is both the bearish flag's downward target and coincides with the previous structural support and breakout area." This area may become a "retest sell-off zone," triggering a new round of declines.
At present, the overall market sentiment remains bearish, and Dogecoin's trend is still highly correlated with the overall market. Before a clear trend reversal, analysts suggest that investors remain cautious and closely monitor the defense of key support levels.
The market situation changes rapidly, and specific entry and exit positions should be determined in real-time. Just follow the trend once it breaks! No matter how high the confidence, please strictly execute the take profit and stop-loss strategy! That's all for today! Follow me, and you won't get lost!
