Dogecoin Plummets 6% Amidst Market Correction, Analysts Eye Bullish Reversal

Dogecoin (DOGE) has been a subject of intense scrutiny and debate among cryptocurrency enthusiasts and analysts alike, as its price has been volatile in recent weeks. The popular meme cryptocurrency has experienced a significant decline, dropping by approximately 6% in the last 24 hours to around $0.20. This downturn comes amidst a broader market correction, with Bitcoin falling below $84,000.

The price movement of Dogecoin has been closely analyzed by technical analysts, who have identified a "monster falling wedge" pattern. This pattern suggests that the cryptocurrency's price is moving between two converging trendlines, with one descending from recent swing highs and the other descending at a shallower angle from short-term lows. This pattern is visible on the daily DOGE/USDT chart on Binance.

Crypto analyst Satoshi Flipper highlighted this pattern in a recent post on X, noting that a falling wedge is often viewed as a potential bullish reversal signal. This happens when sellers become exhausted, and buyers step in near the wedge's support line. The current support level at $0.20 is being closely watched by market participants. If Dogecoin can maintain this level, analysts suggest it could rebound toward targets of $0.30, $0.37, and potentially as high as $0.45 in coming weeks. However, breaking below this support could lead to further declines.

Network activity on Dogecoin has decreased dramatically in recent months. Data shows new address creation has dropped from 1.29 million in November to approximately 30,815 currently. This reduction in new addresses indicates lower investor participation in the network. Lower investor engagement typically weakens buying pressure, which aligns with the price decline, as fewer active participants often correlate with downward price movement. The sharp drop in new addresses is one of the fundamental factors behind the recent price weakness.

Market sentiment has been further impacted by U.S. President Donald Trump's announcement of a 25% tariff on European Union imports. This announcement raised concerns about potential trade tensions between the United States and European Union. Global markets reacted to this economic uncertainty, with cryptocurrencies being particularly affected. Bitcoin's drop below $84,000 dragged down the broader crypto market, including Dogecoin.

Technical indicators are