Doge Price Crash? Analysts Warn of 59% Drop After Key Breakdown

Dogecoin has slipped below a key trendline that has guided its price since 2018. The breakdown comes during a period of high volatility, with the current DOGE price at $0.1506. Trading volume over the past 24 hours has reached $2.83 billion. Despite the daily gain of 7.73%, the token has lost 13.26% over the last week.

The breach aligns with a rejection near $0.16395, which corresponds to the 0.786 Fibonacci level. A technical researcher explained that if this structure fails to recover quickly, we could be looking at prices falling as far as $0.06167.

This area is being watched as the next major support. A move to that level would represent a 59% drop from the current market price.

#Dogecoin $DOGE is breaking out of an ascending parallel channel, signaling a potential move toward $0.060! pic.twitter.com/p4nclPILNr

— Ali (@ali_charts) April 7, 2025

Large Whale Transfer Sparks Market Uncertainty

A transfer of 300 million DOGE to Binance has added to traders’ caution. The DOGE, worth around $41.7 million, came from a large holder. Moves of this size often raise concerns about potential market sell-offs.

The transaction appeared shortly after Dogecoin lost its trendline support, adding to bearish pressure. “The timing of this transfer doesn’t look random. It raises questions about whether more downside is expected,” said a blockchain data analyst monitoring the activity. Some traders believe such transfers can increase volatility if large-scale selling follows.

DOGE Price Hovers at $0.135 as Traders Watch for Bounce

Dogecoin is testing the $0.135 level, an area that played an important role in previous price moves. This level acted as both resistance and support during a range-bound phase in early 2023. Market participants are closely monitoring whether the price can stabilize here.

Technical patterns show a possible bullish divergence on the daily chart. While the price continues to dip, the Relative Strength Index (RSI) is making higher lows. A market analyst noted that this kind of RSI movement suggests sellers might be slowing down, but it’s too early to say if it will lead to a real rebound.

#Dogecoin has back-tested a key level from its previous Consolidation Range 🔥$Doge Army! The harder the battle, the sweeter the victory.
Are you ready for $Doge to hit a dollar? pic.twitter.com/Wdk8bOA6wi

— Trader Tardigrade (@TATrader_Alan) April 7, 2025

A clean hold above $0.135 could point to short-term recovery, while a break below may open the door to $0.12 or $0.10.

Futures Market Sees Position Shift as Sentiment Wavers

In the derivatives market, Dogecoin’s open interest has grown 10.54% to $1.37 billion. The funding rate is slightly positive at 0.0055%, showing some traders are still holding long positions. However, the balance between longs and shorts has shifted.

The long-to-short ratio fell from 1.0555 to 0.8591 in just one day. Long positions rose to 53.79%, but the drop in the ratio points to more traders preparing for downward moves. 

Source: Coinglass

Traders are now waiting to see if the price can recover above $0.18 or if lower levels come into play.