The original meme cryptocurrency, Dogecoin, faces a complicated technical outlook following a 9% decline in the last 30 days. According to analyst Alejandro Arrieche, the Dogecoin price prediction has shifted toward a negative bias after the asset lost the $0.14 support level. This move positions DOGE as the worst-performing token within the top 10 this year, with cumulative losses exceeding 58%.
The market appears to be experiencing a capital rotation from meme coins toward higher-quality assets like Bitcoin and XRP. Therefore, trading volume has jumped by 19% in the last 24 hours, exceeding $1 billion. Despite this increase in activity, selling pressure continues to dominate the chart persistently on a daily basis. Likewise, other assets in the category such as Pepe and Bonk have suffered even deeper corrections, exceeding 70%.
From a technical perspective, trader Alan Tardigrade warns about the formation of a bearish rising wedge pattern on the 4-hour chart. Thus, the DOGE price could retreat to $0.12 if it fails to regain the $0.135 zone soon. However, a sustained recovery above $0.14 would invalidate this pessimistic outlook. Consequently, the asset is in a critical decision zone for its short-term trajectory.
Correction scenario versus the search for new catalysts
The asset’s weakness is emphasized as it trades within a descending channel that has remained in place since October. Furthermore, investors are showing extreme caution due to the lack of positive impact following the Fed’s latest rate cuts. On the other hand, the cryptocurrency faces significant psychological resistance at $0.16, a level necessary to reverse the current downtrend. However, retail investor sentiment remains fractured by recent volatility.
While established meme coins suffer, new pre-sale projects like Maxi Doge ($MAXI) are managing to capture attention. This project has raised more than $4 million, presenting itself as an alternative for community-focused traders. Likewise, the migration of liquidity toward new pre-sales suggests that investors are looking for higher risk-reward opportunities. In this way, the community token ecosystem is fragmented between veteran assets and emerging new proposals.
Can Dogecoin reclaim $0.14 to avoid a major crash?
The relevance of this milestone lies in the fact that $0.14 has historically acted as a confidence pivot for holders. Therefore, losing this level increases the risk of capitulation toward levels not seen in months. It is also important to note that DOGE’s lack of real utility remains a recurring argument among the asset’s detractors. However, the strength of its community often generates rebounds unexpected by news of mass adoption.
In conclusion, the outlook for Dogecoin suggests that caution is the best strategy for investors right now. The price is expected to continue trading under pressure as long as it does not regain its historical support levels. Likewise, attention will shift toward the upcoming weekly closes to confirm if the bearish wedge fully executes. Finally, the meme market is going through a purging phase where only projects with the strongest backing will survive in the long term.
