Bearish Dogecoin (DOGE) on-chain data points to a heavy correction

A digital asset analyst has pointed to bearish Dogecoin (DOGE) on-chain data and projected a heavy correction. This comes on the heels of plunging United States tech stocks and crypto prices as the market digests the impact of recent tariffs.

The threat of a trade war has seen both Bitcoin (BTC) price and altcoins drop sharply, especially after a rally in March saw optimism soar. A slip in optimism has seen these assets return to dumps, and the meme coin market is bearing the brunt of the sell-offs. Billions of dollars were wiped off the market cap as optimism plunged further.

Expert trader Ali Martinez has projected a 59% decline in DOGE price to $0.060. This adds to the sharp decline below an ascending parallel after high volatility. The asset trades at $0.1514 after breaking the previous support as bulls fell to declining markets.

“Dogecoin broke out of the ascending parallel and retested the lower parallel but failed to hold. Moreover, on-chain data shows that the asset is facing stronger sell pressure as volumes decrease. The last seven days saw a 10% decrease in DOGE price and a 52% drop in volumes.

“After a brief rally over the weekend, sentiment towards Dogecoin has soured once again, and considering that volumes are dropping and there is stronger sell pressure, I expect this bearish trend to continue. My prediction is for DOGE to continue falling and reach $0.060.”

The initial reaction to Martinez’s forecast was bearish, as holders aimed to maintain support. A massive 59% slip will send signals downwards, defeating short-term projections of a $0.5 bull run. This year, DOGE bulls even set a wider projection of $1 as institutional investors poured funds into altcoins.

After the previous dip, signs of whale accumulation were recorded in meme coins. In March, Dogecoin price jumped 7.5% after whales picked up 220 million tokens. Crypto enthusiast Javon Marks wrote that the DOGE technical pattern could fuel a 270% spike.

“Dogecoin is holding another set of higher lows, and so far, since it’s low, each time this has happened, a surge in price to higher levels has happened! With the target at $0.6533, prices can be set up for the next wave in an over +270% run to reach and break above it.

Meme Coins In FreefallThe meme coin market is now facing the effects of a slide in Bitcoin’s price as optimism falls. These assets are more volatile due to holders' reliance on sentiments rather than fundamentals. The total meme coin market cap dropped 6% to $45 billion after President Trump’s tariffs, with most assets posting double-digit losses.

Shiba Inu recorded 10.2% weekly losses while PEPE and BONK saw 12% and 11.1% respectively. TRUMP token dipped 22% in the same timeframe, with major selloffs from large holders. The asset exchanges hands at $7.72 while its total market cap fell to $1.54 billion.