Bearish Technical Pattern Predicts Dogecoin Price May Crash 15%

Dogecoin (DOGE) trades at $0.192, on the brink of a breakdown from a bearish flag technical pattern. Flag setups, whether bullish or bearish, fall under continuation patterns and catalyze the continuation of the previous trend. In DOGE’s case, the short-term analysis suggests a potential price crash as soon as tomorrow.

Dogecoin (DOGE) Price Analysis: Crash Looms as Bearish Pattern Nears Completion

The 4-hour Dogecoin price chart (DOGE/USD) reveals a bear flag pattern formation. The 18% crash between May 29 and 31 is termed the flagpole, and the uptrending consolidation that followed is the flag. A breakdown occurs when the DOGE price produces a decisive candlestick close below the flag’s lower trend line.

At the time of writing, Dogecoin price trades at $0.192 and is down 2.13% from the intraday high of $0.0204. The four-hour chart displays a clear rejection of the Relative Strength Index (RSI) at the mean level, indicating a lack of buying pressure and suggesting that bearish momentum is in control.

The Awesome Oscillator (AO) is showing a cautiously optimistic outlook, with a receding green histogram attempting to flip above the zero mean level. A successful flip in the AO shows that the buyers are attempting a recovery. In such a case, Dogecoin price could bounce off the flag’s lower trendline, delaying the breakout.

However, the technicals are leaning bearish due to Bitcoin’s uncertain short-term outlook, as institutions are focusing more on Ethereum (ETH) than on BTC. BlackRock recently sold a portion of its Bitcoin holdings and invested in ETH. Hence, a breakdown in Bitcoin price could trigger a crash for Dogecoin and other altcoins as well.

Key Levels to Watch

• A breakdown of roughly $0.191 will confirm the breakdown from the bear flag.
• Theoretical forecasting methods suggest a 13% decline to $0.165, measured from the flag’s peak of $0.210.
• Realistically, DOGE could crash 16% from the breakout point of $0.191
• The $0.165 level is key as it supported Dogecoin price flip from late April to the first week of May, resulting in a 55% rally. Therefore, a revisit of this level would be a key buying opportunity for short-term speculation.

Mid-to-Long Term Outlook for DOGE Remains Bullish

Investors should note that although the short-term outlook may seem bearish, the 2025 forecasts for Dogecoin price remain bullish, as noted by a previous CoinGape analysis. This article also highlights the possibility of DOGE revisiting its ATH in 2025.

Analyst Mary Muthoni noted that Dogecoin price could rally “500% to $1.23” and set up a new high, provided a few technical signals align, repeating history. However, she warns that June may hinder DOGE’s rally, citing muted historical returns.

For a long-term Dogecoin price prediction for 2025 to 2030: Read This