With Bitcoin falling down to the $88,000 mark, Dogecoin, the biggest meme coin in the industry, is down nearly 17% in the past week. With a market cap of $31.27 billion, Dogecoin dominates more than 50% of the meme coin market segment, which has a valuation of $58.20 billion.
Currently, Dogecoin trades at a market value of $0.2110, with a 24-hour surge of 4.68%. Will this short-term recovery in Dogecoin result in a quick bounce back from the $0.20 psychological mark?
Dogecoin Price Crash: $0.20 Support at Risk?
In the 4-hour price chart, Dogecoin continues to maintain a bearish trend under the influence of a resistance trendline. The resistance trendline started from the swing high at $0.41, resulting in multiple bearish rejections.
Currently, Dogecoin trades at a downfall of nearly 50% from the starting swing high. The declining trend has resulted in a bearish alignment of the 50, 100, and 200-day EMA lines.
The downfall reached a low of $0.1953 and has witnessed a short-term recovery. With the bounceback, the daily 4-hour RSI line resurfaces from the oversold region, signaling a potential retest of the $0.23 broken support trendline.
Sentimental Shift: Will Dogecoin Crash Ahead?
Despite the massive crash in Dogecoin, the long-term holders are still in denial mode. This is based on a new tweet by Ali Martinez, a crypto analyst.
Long-term #Dogecoin $DOGE holders are in "denial." pic.twitter.com/MSnefWPGiD
— Ali (@ali_charts) February 26, 2025
The analyst highlights the long-term NUPL ratio dropping to belief or denial stages. This has marked a shift in Dogecoin sentiment from euphoria or greed to belief/denial.
If the broader market continues to crash, the declining trend will now enter a phase of anxiety, which will increase the chances of a prolonged correction.
Dogecoin Network Activity Plummets
Amid the chances of a massive crash, the analyst also highlights a massive slowdown in Dogecoin network activity. The activity has declined by nearly 95%, with the active addresses dropping from 2.66 million to 130,282 active addresses.
#Dogecoin $DOGE network activity has declined by 95%, dropping from 2.66 million active addresses in November to just 130,282 today! pic.twitter.com/SlH3qTuMP6
— Ali (@ali_charts) February 25, 2025
The massive decline has come in just a matter of months, with the Dogecoin price crashing under the $0.25 psychological support.
Dogecoin Key Price Levels
As Dogecoin sustains dominance above its $0.20 psychological mark, the short-term price analysis hints at a potential recovery to challenge the overhead trendline. This trendline is currently near the $0.23 support-turned-resistance level.
In case the recovery run breaks above the crucial resistance, the bull run will likely challenge the 200 EMA line near $0.2720. On the flip side, a breakdown will likely test the $0.1650 mark, followed by the $0.15 psychological support.