DOGE Might Not be Done Decreasing | Credit: Hameem Sarwar
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Key Takeaways
Dogecoin’s price (DOGE) fell by 10% on Jan. 7.
DOGE risks breaking down from a 19-day support trend line.
If DOGE breaks down, what will it mean for the future trend?
Dogecoin’s price started October 2024 with a massive rally, saving its negative yearly performance until then. In roughly 70 days, the memecoin reached a new yearly high of $0.48. However, momentum waned in December, as DOGE tumbled by 40% in two weeks.
The creation of Dogecoin’s first lower high in over six months raises concerns. This could indicate a shift in the prevailing bullish trend.
Will this be the case, or will DOGE regain its footing and move to new highs in 2025? Let’s examine the charts and determine what will happen next.
The DOGE price has fallen since its 2024 high of $0.48. The price showed resilience by starting an upward movement on Dec. 20, regaining half of the previous losses. However, DOGE created a lower high on Jan. 7, 2025, declining by 10%.
On top of the sharp drop, Dogecoin’s price validated the $0.40 area as resistance and created the first lower high in over six months. This points to a gradual trend change from bullish to bearish.
Currently, DOGE trades at a 19-day ascending support trend line that has contained the bounce ongoing since Dec. 20. If Dogecoin breaks down, it could reach the long-term ascending support trend line at $0.27, creating a double bottom relative to the December 2024 lows.
Technical indicators are mixed. The Relative Strength Index (RSI) is at 50, while the Moving Average Convergence/Divergence (MACD) is at 0. So, the price action is leaning bearish while indicators are neutral, making a breakdown the most likely possibility.
Sharp Decline Ahead
The wave count aligns with the price action, giving a bearish Dogecoin prediction. According to the count, DOGE is in wave C of an A-B-C correction (black), which follows a 500% price increase lasting for 125 days.
The Fib time zone tool suggests the correction will be at least 0.38 times as long as the upward movement, which would create the bottom by Jan. 25 at the earliest.
Wave C could end at the 0.618 Fibonacci retracement support level at $0.23, giving waves A:C almost the same length. Depending on how the correction develops, this could either be a temporary decline before the trend resumes, or the beginning of a new downward movement.
Bearish Start to 2025
Dogecoin’s price created the first lower high in over six months on Jan. 7. The price also risks breaking down from an ascending support trend line, triggering a 35% drop. According to the wave count, this will be the final portion of an A-B-C correction.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
