The price of Dogecoin (DOGE) has declined more than 46% year-to-date, according to CoinMarketCap data, as selling pressure and weakness in the meme coin sector weigh heavily on the asset. Crypto analyst @ColinTCrypto has issued a stark warning, labeling DOGE a "weak altcoin" that investors should avoid holding in the current risk-off market environment.
@ColinTCrypto shared a chart showing Dogecoin trading around $0.09, tracing its price movement from the 2021 peak to the present. After its explosive bull market surge, DOGE has mostly traded sideways with occasional short-lived rallies, while the overall trend has been volatile and in a gradual decline. The analyst notes this downward trend has culminated in the formation of a "white triangle" on the chart, with DOGE already falling to its first critical support zone near $0.09.
The chart indicates strong signs of a potential further breakdown, which could lead to new lows. Based on the downward trajectory marked, @ColinTCrypto predicts Dogecoin could experience a major price correction to $0.073. A breakdown from current levels would confirm this bearish outlook, potentially leading to an almost 20% decline in DOGE's value.
The analyst attributes the broader bearishness to a risk-off environment, where investors are avoiding risky bets amid persistent geopolitical tensions, rising energy costs, and general market uncertainty. He stated that most major altcoins are showing similarly bearish positions and are on the verge of further breakdowns as market sentiment remains weak.
Other analysts echo this cautious stance. Market expert Osemka on X stated there is "no more room left for altcoins to run," suggesting Dogecoin and other meme coins could soon break downwards. Osemka noted that DOGE has been "getting slammed" by the Exponential Moving Average (EMA) for the past three weeks, reinforcing the view that the cryptocurrency is on the verge of another decline.
From a technical perspective, Dogecoin started a fresh decline after closing below $0.0932, mirroring moves in Bitcoin and Ethereum. DOGE broke below the $0.0920 and $0.0910 support levels, even trading below $0.090 and forming a low near $0.0889. The price is now trading below $0.0910 and the 100-hourly simple moving average.
A bearish trend line is forming with resistance at $0.0910 on the hourly DOGE/USD chart. If the price fails to climb above the $0.0920 resistance level, it could continue moving down. Initial support is near $0.090, followed by $0.0880. The main support sits at $0.0850; a break below this level could see the price slide toward $0.0800 or even $0.0750 in the near term. Technical indicators support the bearish outlook, with the hourly MACD gaining momentum in the bearish zone and the RSI below the 50 level.
