Fun

Dogecoin Crashes 40%, But This Analyst Sees A Bullish Setup

News Feed - 2025-02-04 02:02:18

Este artículo también está disponible en español.


In a dramatic reversal, Dogecoin (DOGE) plunged from around $0.34 as low as $0.20, wiping out nearly 40% of its value before finding tentative stability near $0.25 at press time. However, crypto analyst “Coosh” Alemzadeh (@AlemzadehC) maintains a bullish long-term outlook, sharing a weekly chart of DOGE/USD and remarking, “DOGE: Looking really good here,” despite the recent turmoil. Why Dogecoin Is Still Looking Bullish


The unexpected news of new tariffs by the Trump administration on major trading partners like China, Mexico, and Canada on Friday has sent shockwaves across financial markets, including cryptocurrencies. The news has led to a broad sell-off in risk assets, with Dogecoin, known for its high volatility, being particularly affected. The fear of an escalating trade war has dampened investor confidence, pushing many to liquidate their positions in cryptocurrencies. Related Reading Dogecoin May Face An ‘Ugly’ Drop Before The Weekend, Analyst Warns 3 days ago


Following the tariff announcement, Dogecoin saw an immediate and significant drop, within hours of the news breaking. Over the weekend, the crypto market crash extended as part of a larger market reaction, where major altcoins like XRP and Cardano also experienced double-digit percentage losses. The entire crypto market wiped over $2.2 billion in crypto liquidations.


Alemzadeh chart, drawn on the weekly timeframe, shows DOGE’s price initially breaking above a descending red trendline in October. That line has acted as a key resistance zone stretching back to previous local highs, and the ensuing retreat has brought the market right below the trendline again.


In parallel, Dogecoin is still positioned above its 30-week moving average (30w), which is plotted as a pink-dotted curve and currently sits around the $0.20–$0.22 range. Analysts often regard weekly closes above this average as a sign of underlying strength, suggesting that DOGE may yet hold onto its bullish structure if the market steadies above that threshold. Dogecoin price analysis, weekly chart | Source: X @AlemzadehC


The chart also highlights a series of Fibonacci retracement and extension levels, each offering insight into potential support and resistance. At the forefront is the 0.618 Fibonacci retracement around $0.2667, a critical region that the price now hovers around. This level often draws the attention of traders looking to identify whether the market is in a standard pullback or has begun a deeper correction. Related Reading Dogecoin (DOGE) Plunges to $0.20: Is This the Bottom or More Pain Ahead? 12 hours ago


Next up sits the 0.786 retracement near $0.3467. Beyond that, full retracement around $0.4843 marks a more distant objective should DOGE reclaim its bullish momentum. Even loftier extensions, indicated on Alemzadeh’s chart at $1.27 (1.618) and $2.30 (2.0), serve as hypothetical targets if the token achieves a major breakout.


An additional element is the Elliott Wave labeling, depicting what appears to be waves “1, 2, 3,” followed by the current dip marked as wave “4” near $0.26. In traditional Elliott Wave theory, wave four commonly retraces into the 0.236–0.618 zone of the previous wave, so the present price action touching the 0.618 Fibonacci point fits well with that pattern. Should DOGE confirm wave four support, the next phase—wave five—could drive the market back above former highs with the main targets being $1.27 and $2.30 if bullish sentiment returns.


At press time, DOGE traded at $0.25. DOGE crashes to $0.20, 1-week chart | Source: DOGEUSDT on Tradingview.com Featured image created with DALL.E, chart from TradingView.com

News Feed

Bitcoin Rally Expected: Standard Chartered Eyes New High Of $73,800 Pre-US Election
Este artículo también está disponible en español. Bitcoin has recently shown significant momentum, reaching its highest level since July, briefly touching $67,900 and rec
Coinflex Launches Noncustodial Interest-Bearing Stablecoin on BCH and ETH Networks
Coinflex Launches Noncustodial Interest-Bearing Stablecoin on BCH and ETH Networks The cryptocurrency exchange Coinflex has announced the launch of a unique inte
Samsung secures $6.4B grant to expand Texas chip manufacturing: Report
Zoltan Vardai13 hours agoSamsung secures $6.4B grant to expand Texas chip manufacturing: ReportThe South Korean manufacturing conglomerate also plans to invest up to $45 billion in expanding its Texas facility by the end
Solana drops 5% on new FTX plan, quick rebound to wipe $125M shorts
Ciaran Lyons2 hours agoSolana drops 5% on new FTX plan, quick rebound to wipe $125M shortsIf Solana recovers as quickly as it has in recent times, approximately $125 million in short positions will be liquidated.1061 Tot
Futurama can’t stop making fun of crypto and blockchain
Turner Wright8 hours agoFuturama can’t stop making fun of crypto and blockchainThe season two premiere of the animated science fiction series’ latest iteration focused on an NFT heist from a museum displaying digital
AI offerings are a bad joke, and investors aren't laughing
Michael Brescia1 hour agoAI offerings are a bad joke, and investors aren"t laughingNeither OpenAI nor other tech giants have produced systems capable of doing much, but that hasn"t stopped them from pushing for massive n
Russian Opposition Leader Navalny Raises $700,000 in Crypto Donations
Russian Opposition Leader Navalny Raises $700,000 in Crypto Donations Alexei Navalny, Russia’s leading critic of the current Kremlin administration, has attracted a serious
CoinDesk’s Most Influential 2019: Vote Now for Crypto’s Heroes (and Villains)
This has been another tumultuous year for the blockchain industry, rife with tragedy and comedy, mystery and strife, innovation and disappointment. Just consider some of 2019’
US Federal Reserve Seeking Manager to Research CBDCs and Stablecoins
US Federal Reserve Seeking Manager to Research CBDCs and Stablecoins The U.S. Federal Reserve (Fed) has posted a job advertisement that seeks to hire a role rela
Ripple Labs closes Standard Custody acquisition deal
Vince Quill6 hours agoRipple Labs closes Standard Custody acquisition dealJack McDonald will remain CEO of Standard Custody while also serving in his new role as senior vice president of stablecoins at Ripple.2697 Total
Solana Price Prediction: Analyst Projects Colossal 400% Uptrend This Cycle, Reveals Ultimate Target
Este artículo también está disponible en español. After a brief retracement, the Solana price has found support at the $163 mark and is currently trading at approximately
Ripple Scores $15 Billion Valuation — CEO Says Financial Position Is Strongest Ever Despite SEC Lawsuit Over XRP
Ripple Scores $15 Billion Valuation — CEO Says Financial Position Is Strongest Ever Despite SEC Lawsuit Over XRP Ripple has bought back shares from its Series C funding round, wh