Analyst Ali Martinez projects Dogecoin could fall to $0.08 after the memecoin broke below a multi-year consolidation pattern. The cryptocurrency has dropped over 8% since escaping its ascending channel on the three-day timeframe.
What Happened: Technical Breakdown
Martinez shared his analysis on X, noting Dogecoin completed a bearish breakout from an ascending channel that had contained price action for several years. The memecoin fell below the support trendline to cap off 2025, signaling a potential continuation of downward momentum.
Parallel channels form when price consolidates between two trendlines with matching slopes.
An ascending channel features upward-sloping lines, with the upper boundary acting as resistance and the lower providing support.
Breaking either boundary typically signals trend continuation in that direction. Martinez calculated the $0.08 target based on the standard projection method, which estimates moves equal to the distance between the channel's trendlines.
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Why It Matters: Pattern Implications
Martinez also highlighted Bitcoin's consolidation in a symmetrical triangle pattern on the four-hour chart.
The analyst projects a potential 15% move for Bitcoin based on the triangle's height, though direction remains uncertain until a clear breakout occurs.
Dogecoin traded at $0.1430 at publication time, up more than 9% over 24 hours. The recent bounce has not invalidated the bearish channel breakout, leaving the $0.08 projection intact unless the memecoin reclaims its former support level.
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