Dogecoin faces 23% drop risk as descending triangle tightens
Dogecoin (DOGE) is trading around $0.095 and is at risk of a sharp ~23% drop as a descending triangle nears breakdown. The pattern has formed lower highs since January, while the key support at $0.0881 is described as the last defense. Technical bias is turning cautious: the article cites weakening buyer momentum and suggests that, absent a strong demand catalyst, the path of least resistance for Dogecoin is lower.
On-chain demand signals also deteriorated. New address growth collapsed 87% in under two weeks: roughly 74,150 new wallets on March 13 fell to about 9,650 by March 21–22. The piece links these spikes in new addresses to failed rebounds near the $0.10 area—buyers appear to enter at resistance and exit quickly.
Realized profit/loss data from Santiment shows ongoing loss-taking since late January, with the deepest single-period realized loss near -$868K around March 21–22. The combination of collapsing new address creation and heavier realized losses implies selling pressure is being absorbed faster than fresh capital is arriving.
For traders watching Dogecoin, the $0.0881 support level is the immediate trigger to monitor, as a breakdown could accelerate downside toward deeper corrections.
Bearish
The article paints a coordinated bearish setup for Dogecoin: (1) a descending triangle nearing breakdown with a tight structure and weakening buyer momentum, (2) sharp deterioration in on-chain demand via an 87% collapse in new wallet addresses, and (3) deeper realized losses (around -$868K), consistent with holders cutting exposure rather than waiting. Historically, when DOGE trades below/through a key support after a prolonged lower-high structure, downside can accelerate as late buyers fail and stops trigger.
For traders, this increases the probability of a short-term risk-off move toward/through the $0.0881 support, potentially amplifying volatility and bearish momentum. In the medium term, unless a clear demand catalyst returns (rising active participation and new address growth), the repeated “buy at resistance, exit quickly” behavior suggests rallies may struggle to sustain, keeping sentiment fragile even if DOGE bounces briefly. Longer-term direction would depend on whether buyers can reclaim key resistance (near $0.10 cited) with renewed network inflow; otherwise, the current data favors continued distribution.