"Typical retail investor trap"...Dogecoin, a massive crash warning that scoffs at the 0.1 dollar rebound

▲ Dogecoin(DOGE)

Recently, a warning has emerged that Dogecoin (DOGE) will experience a record-breaking crash.

On April 27 (local time), virtual asset specialized media NewsBTC reported, citing the analysis of virtual asset analyst Crypto Paradise, that the current trend of Dogecoin is highly likely to be a typical bull trap. It explained that despite Dogecoin temporarily recovering the psychological resistance level of $0.1 recently, technical indicators are sending strong bearish signals.

Paradise noted that Dogecoin swept past the upper trigger line of the buying climax but failed to maintain high price levels. He emphasized, "The candle breaking below the lower trigger line is a typical confirmation signal that the market's supply is completely overwhelming demand." From a structural perspective, Dogecoin has not broken through the downward resistance trendline at all. Paradise diagnosed that this rejection phenomenon is due to the ongoing structural weakness within the current Dogecoin ecosystem.

Currently, Dogecoin's short-term price defense line is formed around $0.09290. If selling pressure continues and this support line breaks, the next downward target is expected to be $0.08917. Some market participants may call this a simple healthy correction, but Paradise defined it as a sharp decline that could come faster than expected. As long as the price remains within the order block and fair value gap areas on the 1-hour chart, the downside risk is not expected to disappear.

Last week, Dogecoin seemed to be recovering, touching $0.102 driven by the overall market rebound. However, with decreasing trading volume and prices drawing a downward curve again, the upward momentum appears to be rapidly weakening. Other analysts also warn that if Dogecoin fails to close and settle above $0.1, it could fall to the $0.08 level, let alone the $0.12 high that has not been tested since mid-February. Concerns are also growing that the high volatility characteristic of memecoins could be further amplified in a bear market.

As funds in the virtual asset market concentrate on large assets such as Bitcoin and Ethereum, Dogecoin's position, as a leading altcoin, is narrowing. Technical indicators such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) are still moving sideways in the neutral or lower range, indicating a lack of additional buying inflow. Investors are maintaining a cautious attitude, suspecting whether the recent attempt to break $0.1 was a process of large players offloading their holdings. Dogecoin is currently fighting a battle for survival between its downward resistance line and support line.

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