Dogecoin Battles Selling Pressure, Analyst Sees Potential $4 Rally

Dogecoin, the popular meme-based cryptocurrency, has been grappling with intense selling pressure, trading below key liquidity levels. The entire meme coin market has witnessed significant liquidity outflows, with fear and uncertainty dominating investor sentiment. This has led to a sharp decline in Dogecoin's price, falling over 35% since mid-February. Negative momentum continues to drive the market, raising concerns about further potential drops.

However, not all analysts are bearish on Dogecoin's future. Ali Martinez, a prominent analyst, shared a long-term technical analysis suggesting that despite recent struggles, Dogecoin is still positioned for a potential rally. According to Martinez, if Dogecoin holds above the $0.16 to $0.19 support, the path remains open for a potential move to $4 in the coming months. This support zone has historically been a critical accumulation area, and if buyers step in, Dogecoin could be set for an aggressive rebound.

Dogecoin is currently trading below the $0.25 mark, a key price level that will determine its short-term direction. The meme coin market continues to bleed, with speculative assets facing the worst selling pressure. Dogecoin, the leader of this sector, has dropped 46% since late January, struggling to regain momentum as the market remains fearful. Analysts warn that a further downside is possible unless buyers step in to defend key support.

Martinez's analysis highlights a crucial long-term perspective for Dogecoin. He notes that if DOGE holds above the $0.16 to $0.19 support, the path remains open for a potential move to $4. This would represent a 1,700% price increase, making DOGE one of the most explosive assets in the market. However, Martinez emphasizes that this move will take time, and even if DOGE holds these levels, it doesn’t guarantee an immediate rally.

In the short term, DOGE must reclaim the $0.25 level to break the bearish trend and confirm a potential reversal. If selling pressure continues, a drop below $0.16 could lead to further declines and invalidate the bullish outlook. For now, all eyes are on whether this crucial support level holds, as it could set the foundation for Dogecoin’s next major move.