Key Insights:
At a moment when the crypto markets are trying to consolidate, Dogecoin looks at a potential crash as well as a potential rally.
A breakdown below $0.25 could crash Dogecoin to $0.15, which is the next support zone.
On the upside, only a breakout above $0.31 could help DOGE cross 0.5.
Long-term price trends are intact in DOGE, while in the short-term, the markets could get bearish.
Dogecoin could see further accumulation if its price slips to lower levels due to strong fundamental reasons.
Dogecoin could soon see its price falling to $0.15 if it slides below $0.25, which has been acting as the critical support level for the bull market. The top memecoin has seen intense corrections in the last 30 days as memecoin markets extend losses in 2025. DOGE has fallen from a high of $0.48 in December 2024 to a low of $0.25 this week.
Dogecoin Risks Falling 60%
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Since October 2024, DOGE has seen strong growth led by Donald Trump's win, the memecoin supercycle, ETF expectations, and Elon Musk's indirect "DOGE" promotions. However, liquidity worries seem to have overtaken the control of its price in the last couple of months.
To make matters worse, DOGE's weekly chart shows that both RSI and MACD have indicated a weak momentum in the near term. RSI has been in a downtrend for the last few weeks, while MACD on weekly charts shows a near-zero level.
Presently, there is massive profit booking as well as FUD in the memecoin markets which have pinned down the price of DOGE.
A crypto AI agent developed by ASIX AI shows that Dogecoin might be in the oversold territory but not at extreme lows yet. Its reasons for DOGE being oversold are low RSI (38), near-zero MACD (moving averages), near-zero short-term moving average (50 EMA at 0.32), and weak Bollinger Bands (low volatility) on 1D charts.
The weekly charts too indicate that DOGE is oversold. RSI in these charts is at $38.55, which is below the oversold threshold of 40 (during a bull phase).
The current FUD around memecoins could lead you to think that the best thing to do in the current markets is to dispose of DOGE. However, long-term trends indicate DOGE could resurge well above its last high of $0.48 soon.
Factors supporting DOGE's strong potential in the long-term are its upcoming ETFs, ability to act as a payment processor and its association with Elon Musk.
All these factor reveal that accumulating DOGE at the current levels could be far more profitable in the long run than any other memecoin.
However, the accumulation should be done in phases to avoid short term drawdowns affecting your portfolio. Here, the Dollar Cost Averaging method seems to be a good fit.
Elon Musk-led Department of Government Efficiency could play a key role in alleviating the crypto markets. The DOGE has been able to save roughly $1 billion per day since its official notification in the first week of Trump's presidency.
Further, the department has found severe financial irregularities worth a massive $4.7 trillion that have been done in the last few years. This amount corresponds to one-eighth or roughly 12% of net US Debt as well as the US nominal GDP.
As more irregularities emerge, more taxpayer money would be saved, reducing the government expenditure, which has been the primary driver of inflation in the USA. A cooling down in inflation below 2.1% would allow the US Fed to cut down on interest rates in 2025, ending liquidity crises in the crypto and stock markets.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.