NOIDA (CoinChapter.com) — The memecoin mania has fizzled down slightly as the market entered April and Dogecoin (DOGE) is feeling the brunt of the bearish trend. The crypto token is trending downward with Dogecoin bulls failing to arrest the token’s plunge.
Dogecoin prices have dropped nearly 23% MTD to reach a daily low near $0.17 on April 3. Yet, of all the altcoins, memecoins suffer the most during a market-wide dump since there is very little chance of the crypto tokens recovering. Memecoins often rely on hype and FOMO for their rallies.
8 out of the top 10 memecoins (by market cap) suffered losses over the past 7 days, according to CoinMarketCap data.
Analysts Bullish On Dogecoin
Crypto analyst Ali Martinez highlighted a potential Dogecoin scenario where the memecoin’s price could paint massive gains. Martinez identified a fractal that indicates Dogecoin might experience a significant rally if the pattern holds true.
Following a three-year consolidation period from 2022 to 2024, Dogecoin appears poised for a breakout. Martinez speculated that a successful breakout would potentially increase DOGE price value by over 5,000% to set a new all-time high near $12.
Dogecoin has broken out of the pattern, but the bearish pressure could force the memecoin to pare gains. Moreover, Martinez maintains that Dogecoin remains a viable investment.
The analyst drew parallels to Dogecoin’s previous performance, where it surged from $0.002 to $0.70 after ending a consolidation phase in 2021. Furthermore, Martinez cautioned his followers against newer memecoins that cropped up in March and attracted much investor attention.
Bulls Fail To Arrest Token’s Downtrend
Bears seem to be in control of Dogecoin price action currently, forcing the token to drop nearly 10% on April 3 from the day’s high near $0.188. The long upper wicks on the day’s price candle highlight the bearish pressure that the Dogecoin bulls are facing.
DOGE bulls failed to defend the 20-day EMA (red wave) dynamic resistance. If the profit booking increases, DOGE price risks a drop to the support level near $0.156.
Moreover, breaching the immediate support could see Dogecoin price test the support 0.236 FIB support level near $0.136 before recovering.
On the other hand, speculation and hype could return at any time. As such, DOGE bulls would likely push toward the resistance near $0.19. Moving above the $0.19 price level would infuse confidence in the memecoin’s rally, resulting in the Dogecoin price likely targeting the 0.786 FIB resistance near $0.22.
The relative strength index for DOGE remained neutral, with a score of 49.92 on the daily charts.
