Dogecoin Drops 2.02% Weekly Amid Volatility, Analysts Predict Sharp Movements

Dogecoin's price has been fluctuating around the $0.15 level, currently trading at $0.158, which marks a 0.35% decrease in the last 24 hours and a 2.02% decline over the past week. Despite various attempts to break through key levels, the price has struggled, dipping as low as $0.149 before recovering slightly. Market observers suggest that these short-term fluctuations could be a precursor to significant price movements in either direction.

A recent analysis by SwallowAcademy on TradingView indicates that Dogecoin may experience a dramatic drop before any substantial price increase. The analyst compared Dogecoin's price action to Tether (USDT) on daily charts, noting the meme coin's extreme volatility. According to the analysis, Dogecoin might see a sudden spike at the beginning of 2024, followed by a decline from highs around $0.23, and another downslide to $0.09 mid-year before recovering above $0.45. SwallowAcademy predicts that a similar trend may develop in 2025, with Dogecoin potentially declining another 40% to around $0.09, creating a support zone before possibly skyrocketing 400% to $0.45. The current price stands at over $0.15, and the analyst is anticipating the expected drop to $0.09.

Another analysis by Trader Tardigrade suggests that Dogecoin's initial "false break" since December 2024 could indicate the end of the downtrend. The cryptocurrency has generally traced a downtrend of lower highs and lower lows, common bearish market indicators. After dropping to $0.13 on April 7, the price briefly bounced before declining again. Trader Tardigrade interprets this as a "false breakdown," potentially signaling an imminent bullish reversal. If the reversal occurs, Dogecoin may aim for $0.42, according to their analysis.

Statistics from IntoTheBlock reveal differing trends in Dogecoin holder behaviors. Long-term holders, who have held their coins for more than a year, lost 2.65% last month. Mid-term holders, labeled as "Cruisers," who hold their coins for between one and twelve months, lost even more by 12%. In contrast, short-term holders who held for under a month increased by 107%. This realignment suggests increasing speculative demand rather than long-term confidence, which could result in enhanced short-term price volatility.

Despite the mixed signals from general users, large holders appear to be increasingly interested in Dogecoin. Statistics show a consistent increase in big holder inflows, up 5.30% in the last week and 324% in the last month. This growing interest from large holders could influence future price movements and market sentiment.