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

▲ Dogecoin (DOGE)/AI Generated Image

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

According to the cryptocurrency specialized media TheCryptoBasic on June 26 (local time), Dogecoin has approached a key long-term support zone amidst the recent broad market downturn. The original report stated that Dogecoin fell approximately 3% in the last 24 hours, 11% in the last week, and 55% in the last year.

This bearish trend followed a sharp decline in Bitcoin (BTC). Bitcoin temporarily dropped to $58,000 for the first time since October, then recovered to around $59,400. According to the media, Bitcoin could fall further to $54,000. Furthermore, Bitcoin's weakness is putting pressure on altcoins across the board, including Dogecoin.

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

Short-term technical indicators have also captured 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 held, a rebound to $0.081 is possible. Conversely, if it falls below $0.073, the short-term bullish setup will be invalidated, increasing the risk of further losses.

On-chain indicators clearly showed the extent of investor losses. Dogecoin is approximately 90% lower than its all-time high recorded over 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 occurred. At that time, Dogecoin traded around $0.002, and extreme pessimism was summarized as a trend often seen at major market bottoms in the past.

*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.*