Dogecoin (DOGE), 90% Plunge from All-Time High...Preparing for a $1 Rally?

▲ Dogecoin (DOGE)/AI Generated Image

Dogecoin (DOGE) has approached historical support after a 90% drop from its all-time high. The market stands at a crossroads between further collapse and the possibility of retesting $1.

According to crypto media outlet The Crypto Basic on June 26 (local time), Dogecoin has approached a major long-term support zone amid the recent general decline in the cryptocurrency market. The original report stated that Dogecoin fell approximately 3% in the past 24 hours, 11% in the past week, and 55% in the past year.

This bearish trend followed a sharp drop in Bitcoin (BTC). Bitcoin temporarily fell to $58,000 for the first time since October before recovering to around $59,400. According to the media, Bitcoin could fall further to $54,000. Additionally, Bitcoin's weakness is putting pressure on altcoins, including Dogecoin.

Dogecoin's long-term buy candidate zone is between $0.05 and $0.06. The weekly chart suggested that Dogecoin could retest the support level around $0.0607 before attempting a recovery. If buyers defend this price level, Dogecoin could move towards the $0.49 resistance level in the long term, and a 1,270% rally to $1.05 is also suggested in the next major bull market.

Short-term technical indicators also showed signs of easing selling pressure. The TD Sequential indicator showed a buy signal for Dogecoin. The media analyzed that $0.073 is acting as a key short-term support level, and if this price is maintained, a rebound to $0.081 is possible. Conversely, if it drops below $0.073, the short-term bullish setup is invalidated, and the risk of further losses increases.

On-chain metrics more clearly showed the scale of investor losses. Dogecoin is approximately 90% below its all-time high recorded about five years ago, with only 17% of the circulating supply remaining in profit. The media pointed to April 2020, immediately after the COVID-19 market crash, as the last time a similar market environment appeared. At that time, Dogecoin was trading around $0.002, and extreme pessimism was a recurring pattern often seen at major past bottoms.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*