Dogecoin Faces 93% Crash Risk as Bitcoin Eyes $150,000 Surge

Analyst and trader Ali Martinez has expressed a bearish outlook on a prominent memecoin, while also providing insights into the future of Bitcoin, Ethereum, and Solana. Martinez, who has a significant following on the social media platform X, has warned that Dogecoin (DOGE) could experience a substantial crash of around 93% from its current level if it breaks below the lower boundary of an ascending channel. This pattern has been intact for over a decade, with Dogecoin typically rebounding from the lower support trend line to the upper resistance trend line before dropping back down.

Martinez highlighted that Dogecoin is currently at a critical juncture. If it fails to hold the $0.19 support level, it could trigger a correction to as low as $0.015. An ascending channel is generally considered a bullish structure, indicating that an asset is in an uptrend with higher highs and higher lows. However, a move below the pattern’s diagonal support could signal that the asset is poised to enter bear territory.

Turning to Bitcoin (BTC), Martinez suggested that based on the Pi Cycle Top indicator, a tool used in technical analysis to predict Bitcoin’s market tops, the cryptocurrency could surge to $150,000 if it reclaims the $97,000 level. This indicator is often used by traders to gauge the potential peak of Bitcoin’s price cycles.

For Ethereum (ETH), Martinez noted that it is currently testing the lower boundary of a parallel channel. If Ethereum successfully reclaims the $2,350 level, it could fuel a strong recovery, potentially pushing the price towards $3,000 to $4,000. This optimistic outlook is based on the assumption that Ethereum can break through key resistance levels.

Regarding Solana (SOL), Martinez observed that the altcoin is trading within a right-angled ascending broadening channel. If the key support level at around $125 fails to hold, Solana could plummet to $60. A right-angled ascending broadening channel suggests that an asset is in an uptrend, recording higher highs while maintaining a horizontal support. A move below the pattern’s support could indicate a deep drawdown is imminent.