Analyst Crypto Paradise has issued a stark warning for Dogecoin (DOGE), identifying a bearish pattern that could drive the meme coin's price down to around $0.08. Despite a brief reclaim of the psychologically significant $0.10 level, the analyst cautions that a distribution phase is underway, where institutional investors offload positions as retail enthusiasm peaks.
In a detailed TradingView analysis, Crypto Paradise highlighted a classic Volume Spread Analysis (VSA) pattern on Dogecoin's chart. This pattern began with a buying climax followed by a climactic action bar. According to the analyst, this formation typically signals distribution: smart money uses aggressive upward price spikes to sell into retail buying pressure. He noted that when the crowd feels confident, institutional investors are already exiting their positions.
The warning came as Dogecoin briefly surged above $0.10, coinciding with Bitcoin's breakout above $79,000. However, the rally lacked follow-through, and the price quickly failed to sustain higher levels. Crypto Paradise pointed out that DOGE swept the upper trigger line of the buying climax but then broke below the lower trigger line, confirming that supply is dominating demand. From a structural perspective, the meme coin has repeatedly respected a descending resistance trendline and failed to break above it, revealing ongoing structural weakness.
Looking ahead, the analyst set a key downside target at $0.08917, with immediate minor support near $0.09290. He emphasized that as long as DOGE remains within the 1-hour order block and fair value gap zone, the risk of further declines remains high. On the flip side, the bearish outlook would be invalidated only if DOGE manages to break above critical resistance at $0.10338 with strong momentum.
At the time of writing, Dogecoin is trading around $0.09805, down slightly in the last 24 hours, according to CoinMarketCap. The broader market structure remains bearish, and the analyst warns that the next leg lower could come sooner than most expect.
