- Dogecoin’s rally fades after a false breakout driven by Trump’s tariff news.
- Analyst sees a 30% drop ahead as a bearish pattern and weak volume persist.
- A break below $0.13646 could trigger deeper losses toward $0.1025.
Dogecoin has had a new attempt at recovering unrolled abruptly yesterday and is now beginning to reveal signs of a bottom that is building under the surface. First, the larger market was encouraged by a short-lived rally buoyed by external developments such as then US President Donald Trump announcing his intention to put on hold tariffs. But it is already rapidly dissipating. Crypto analyst RLinda shares a technical analysis on TradingView, stating that Dogecoin seems to be commencing its corrective course again with a potential 30% decline.
Resistance Break Fails as Price Slides Below Key Levels
Similarly, RLinda’s assessment is on a failed breakout inside $0.157 to $0.1622 range. A temporary rally fueled by Trump’s announcement that he is putting a pause on tariffs caused Bitcoin’s price to surge and bring up some altcoins like Dogecoin. This rose a notable 10% to $83,300 and was enough bullish momentum for memecoin to crack resistance at $0.16 and rise to $0.163.
Dogecoin is currently consolidating below $0.16 in tandem with the rest of the market. This pattern represents a price action that confirms the breakout was false and the continuation of the ongoing downtrend. As Dogecoin is one of the lucky and proud cryptocurrencies that seemingly overcame all the difficulties caused by the sharp decline in the market before Christmas, this means that the serious buyers could not hinder this later trend, and they were not able to accumulate the cryptocurrency at that time.
Analyst Issues Warning of Potential 30% Decline in Dogecoin
In Dogecoin price action, Technical analyst RLinda identifies a bearish trend pattern and warns of a possibility of correction in Dogecoin price by about 30%. Dogecoin is still trapped within a descending broadening channel that formed on February 14, where highs keep on decreasing along with lows, and it is not out of borders yet. Initially, there was a short breakout to the upside, which gave the impression of a trend change, but the price action has proven otherwise since.
Still, RLinda noted that the buying momentum started by former President Donald Trump’s very own tariff announcement of late is starting to wane. Dogecoin’s sudden bout of sentiment has been reflected in its trading volume, which has fallen almost 50% in the last 24 hours.
This is a decline that shows that sellers have regained control, and momentum is very strong to lean more to the downside. Depending on how it performs to the key resistance zone in the near term, Dogecoin may go deeper in a corrective mode.
Dogecoin Faces Critical Test Amid Heightened Volatility
RLinda commented to her breakdown that if this $0.13646 support was broken, a decline would commence, and the following potential subsequent support levels include $0.1277 and $0.1154. The bearish outlook further gets boosted by a weekly trigger point at $0.14217 that, if broken down, could signal a possible 30% downslide to $0.1025 support. Another thing the analyst also said is that Dogecoin can retest trend resistance within the descending channel before another very important pullback over the following days, in 1H or even in a 2h time frame.
At the time of writing, Dogecoin is trading at around $0.1671, seeing a 3.74% rise in the past 24 hours. There was notable volatility surrounding that intraday price, and it fluctuated between a low of $0.1580 and a high of $0.1683. The current market cap is about $24.88 billion, and the 24-hour trading volume has reduced 24% to $1.91 billion.
