Prepare for Impact: Dogecoin May Plunge Before Rising 400%—Analyst

Dogecoin is still capped at $0.15 with a trading price of $0.158, falling 0.35% in 24 hours and 2.02% over the past week. Various attempts to break through key levels have failed, with the price dropping as low as $0.149 before a slight recovery. Market observers point out that these short term failures could be a precursor to significant price movements in both directions. Can fall 40% before a major price increase A new analysis published on TradingView by SwallowAcademy shows that Dogecoin may fall sharply before any significant price increase occurs. The analyst examined the price action of DOGE against Tether (USDT) on the daily chart, where this meme coin is known to be extremely volatile.

Their chart indicates a sudden increase at the beginning of 2024, followed by a fall from a high of around $0.23, then further decreasing to $0.09 by mid-year before recovering above $0.45. SwallowAcademy believes that a similar trend could develop in 2025. However, their prediction is that Dogecoin could fall an additional 40% to around 0.09 dollars, creating a support zone before potentially surging 400% to 0.45 dollars. The current price is over 0.15 dollars and analysts are awaiting the anticipated drop to 0.09 dollars. ‘False Break’ Pattern – What Does It Mean? An independent analysis by Trader Tardigrade points to an initial “false breakout” of Dogecoin since December 2024. Overall, this cryptocurrency has followed a short term downtrend with lower highs and lower lows, which are common bearish market indicators. However, after dropping to $0.13 on April 7, the price briefly recovered before falling again.

Trader Tardigrade considers this a “false incident” – potentially signaling the end of the bearish trend. With the price remaining above the support line for several days, this pattern could indicate an impending bullish reversal. Based on their analysis, Dogecoin could target the $0.42 level if the reversal occurs.

Behavior of Dogecoin Holders Statistics from IntoTheBlock show that the trend in the behavior of Dogecoin holders is different. Long-term holders ( who have held for more than a year ) lost 2.65% last month. Mid-term holders, also known as “Cruisers,” according to the report, those who hold their coins for about one to twelve months, even lost more than 12%. On the other hand, the number of short term holders under one month has increased by 107%. This adjustment is an indicator that speculative demand is increasing contrary to long-term confidence, which may lead to an increase in price volatility in the short term. Large Holders Are Showing Increasing Interest Despite mixed signals from users in general, large holders seem to be increasingly interested in Dogecoin. Statistics show that the cash flow of large holders has been steadily increasing – up 5.30% in the past week and up to 324% in the past month.