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Dogecoin Faces 59% Price Drop as Market Sentiment Plummets

Coin WorldWednesday, Apr 16, 2025 6:26 pm ET

1min read

A digital asset analyst has highlighted bearish on-chain data for Dogecoin (DOGE), suggesting a significant correction is imminent. This analysis comes amidst a broader market downturn, where United States tech stocks and crypto prices have plummeted due to recent tariff impacts. The meme coin sector has also been severely affected, with billions of dollars wiped off the market cap.

Expert trader Ali Martinez has forecasted a 59% decline in the DOGE price, projecting it to drop to $0.060. This prediction follows a sharp decline below an ascending parallel channel, driven by high volatility. Currently, DOGE is trading at $0.1514 after breaking through previous support levels as bullish momentum waned in the face of declining markets.

Over the past week, DOGE has experienced a 10% decline, increasing sell pressures. On-chain data indicates significant volatility, with sentiments plummeting over the weekend. These factors, combined with a drop in volumes to $3.3 billion, pose challenges to a broader recovery. The initial market reaction to Martinez’s forecast was bearish, as holders attempted to maintain support. A 59% drop would send negative signals, undermining short-term projections of a $0.5 bull run. Earlier this year, DOGE bulls had set a more ambitious target of $1, fueled by institutional investments in altcoins.

Following the previous dip, there were signs of whale accumulation in meme coins. In March, the Dogecoin price surged 7.5% after whales acquired 220 million tokens. Crypto enthusiast Javon Marks suggested that the DOGE technical pattern could drive a 270% spike. “Dogecoin is holding another set of higher lows, and so far, since it’s low, each time this has happened, a surge in price to higher levels has happened! With the target at $0.6533, prices can be set up for the next wave in an over +270% run to reach and break above it.”

The meme coin market is grappling with the effects of a slide in Bitcoin’s price, as optimism wanes. These assets are more volatile due to their reliance on market sentiments rather than fundamentals. The total meme coin market cap dropped 6% to $45 billion following President Trump’s tariffs, with most assets posting double-digit losses. Shiba Inu recorded 10.2% weekly losses, while PEPE and BONK saw 12% and 11.1% declines, respectively. The TRUMP token dipped 22% in the same period, with major selloffs from large holders. The asset is currently trading at $7.72, with its total market cap falling to $1.54 billion.

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