Dogecoin Faces 42% Drop Risk as Analyst Warns of Weak Support Levels

Alexey Bondarev2 hours ago

Dogecoin Faces 42% Drop Risk as Analyst Warns of Weak Support Levels

Dogecoin faces potential downside risk as analysts warn of weak technical support levels. Analysts suggest the meme coin could drop 42% if current price floors fail. The warning comes despite rising futures activity that signals trader interest in the token's next move.

What Happened: Support Warnings

Dogecoin traded flat Sunday with less than 1% gains over 24 hours. Trading volume surged 95% to $1.16 billion for the dog-themed cryptocurrency.

The token lagged Bitcoin and Ethereum, which gained 1.90% and 2.64% respectively. Open interest for DOGE futures climbed 1.27% in the same period, according to Coinglass data.

Cryptocurrency analyst Ali Martinez warned on social media that Dogecoin has "weak support under current levels." He identified the next major support zone near $0.081—a 42% decline from current prices.

Also Read: Binance Secures Three Abu Dhabi Licenses Months After $2 Billion MGX Deal

Why It Matters: Technical Signals

The diverging technical indicators create uncertainty for traders. Trader Tardigrade, another market analyst, identified a symmetrical triangle pattern on Dogecoin's 12-hour chart that could signal a bullish reversal.

The Moving Average Convergence Divergence indicator showed a "Buy" signal for DOGE, according to TradingView. The Awesome Oscillator displayed a conflicting "Sell" reading. Rising open interest amid flat prices suggests traders are positioning for significant price movement in either direction.

Read Next: Ripple CTO Backs CZ Against Schiff, Says Bitcoin Network Cannot Be Replicated

Disclaimer and Risk Warning: The information provided in this article is for educational and informational purposes only and is based on the author's opinion. It does not constitute financial, investment, legal, or tax advice. Cryptocurrency assets are highly volatile and subject to high risk, including the risk of losing all or a substantial amount of your investment. Trading or holding crypto assets may not be suitable for all investors. The views expressed in this article are solely those of the author(s) and do not represent the official policy or position of Yellow, its founders, or its executives. Always conduct your own thorough research (D.Y.O.R.) and consult a licensed financial professional before making any investment decision.

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