Dogecoin Price Could Crash 60% — Here’s Why You Shouldn’t Trust Social Media Hype

NOIDA (CoinChapter.com) — Dogecoin price has been consolidating following April 12’s crypto market flash crash. Though the token is crabbing, DOGE fans continue to share charts that promise a bull run for the token soon.

For instance, a crypto trader by the username XO shared a DOGE price chart with a bullish pattern called the ‘ascending channel.’

XO highlighted that the DOGE price is moving toward the channel pattern’s support trendline. The trader speculated that after testing the support trendline, the DOGE price could rise to the channel’s resistance.

However, Dogecoin could also invalidate the setup and break below the pattern. Though XO believes that technicals support a bullish outlook for the memecoin, Dogecoin price is facing bearish cues from a technical setup.

DOGE Price Moving Inside Bearish Triangle

Ironically, the DOGE price has formed a bearish technical pattern called the ‘Descending Triangle.‘

Market analysts predominantly consider the descending triangle a bearish continuation signal in a technical chart pattern. A downward-sloping upper trendline characterizes this pattern, with declining resistance levels that progressively lower the peaks of the price action.

Additionally, a horizontal lower trendline acts as support, maintaining a consistent low point that the price struggles to breach. The formation indicates that selling pressure is gradually increasing, overcoming the buying interest, as each rally is weaker than the last.

In a descending triangle setup, the height of the triangle’s thickest section determines the price target. If the bearish pattern pans out, the DOGE price could drop 62% to reach the projected price target near $0.05.

DOGE Continues Its Downtrend

DOGE price continued its downtrend on April 18 as bulls desperately struggled to hold above the 100-day EMA (blue wave) dynamic support. Yet, if the downtrend continues and the trendline support breaks, DOGE price could drop to the support near $0.127.

Moreover, breaching the immediate support might force the Dogecoin price to test the 0.236 FIB support near $0.102 before recovering.

However, if the bulls start a rally, the DOGE price could rally to the 20-day EMA (red wave) resistance near $0.171. Furthermore, breaking and consolidating above the immediate resistance could give the Dogecoin price the boost to challenge the resistance near $0.2.

The relative strength index, or RSI, for DOGE, remained neutral, with a score of 40.25 on the daily charts. However, the RSI trendline forming lower highs since March highlights the lack of bullish momentum in DOGE prices, which could mean more bearish cues for the token.