Dogecoin (DOGE) Weekly Chart Mirrors 2021 Crash Pattern — Bearish Signals Flash

Key Takeaways

• Unlike 2021, DOGE’s price may struggle to recover due to weak on-chain and technical indicators.
• The MVRV Long/Short Difference at -21.88% indicates that Dogecoin remains in a bearish phase.
• DOGE continues to trade in a falling channel, with resistance at $0.23 and major support at $0.13.
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After hitting $0.48 in December 2024, the Dogecoin (DOGE) weekly chart appears to have followed the same trend that saw it collapse from its all-time high in May 2021.

However, contrary to the price action of 2021, it does not seem like DOGE will recover soon. This position is based on the signals shown by several indicators.

But how will DOGE perform going forward? This CCN analysis reveals what could lie ahead for the cryptocurrency.

Dogecoin Shows Slight Difference to 2021 Price Action

As of this writing, the memecoin trades around $0.17. The Dogecoin weekly chart shows that the recent price action is similar to what happened in 2021.

In May 2021, DOGE’s price rallied to an all-time high of $0.73. Two months later, it experienced a 63% correction to $0.18. This performance appears to align with what DOGE faced between December of last year and now.

Dogecoin’s price jumped to a yearly high of $0.48 in December and has declined by 64% since then. However, unlike what happened in 2021, DOGE might struggle to rebound due to the position of several key indicators.

As seen below, by August 2021, Dogecoin bounced back to $0.34. But today, the Chaikin Money Flow (CMF) has dropped to -0.01.

This drop indicates a lack of accumulation. If sustained, the cryptocurrency might fail to recover from its 48% year-to-date (YTD) decline.

MVRV Indicator Confirms Bearish Phase

In addition to the Dogecoin weekly chart, the Market Value to Realized Value (MVRV) Long/Short difference also suggests that the price might continue struggling.

The MVRV Long/Short Difference shows whether a cryptocurrency is in a bullish phase or a bear cycle. It does this by checking whether long-term holders have more unrealized profits than their short-term counterparts.

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Positive ratios of the metric indicate that long-term holders have more gains, which suggests a bullish cycle. However, according to Santiment, DOGE’s MVRV Long/Short difference is -21.88 %, indicating that the coin is stuck in a bearish phase.

If the ratio fails to exit negative territory, DOGE’s price might not jump significantly above $0.17.

DOGE Price Analysis: More Struggles Ahead

Away from the Dogecoin weekly chart, the daily timeframe shows that the memecoin is trading within a falling channel.

Previously, the memecoin tested the channel’s upper trendline on March 26. However, it failed to breach the resistance and looks unlikely to retest the boundary again.

One indicator that aligns with this thesis is the Awesome Oscillator (AO). As of this writing, the AO reading has dropped below the zero signal line, indicating bearish momentum.

Should this trend remain the same, DOGE’s price might decline to the underlying support at $0.13. If demand for the coin continues to fade, it could slide under $0.10.

On the other hand, if Dogecoin breaks out of the descending channel, it could test the 0.382 Fibonacci level at $0.23.

A broader market recovery could push the price even higher, with the potential to reach the 0.618 golden ratio at $0.33.