Critical Dogecoin Warning: 3 Key Support Levels Point to Sharp 60% Drop

• Dogecoin’s support thins below $0.16, next demand zone at $0.07 with major supply cluster.​
• URPD data confirms 28.26 billion DOGE at $0.07, representing 18.63% of total supply.​
• Breach below $0.16 may trigger a sharp drop; holding opens bullish targets up to $0.25.

Dogecoin ($DOGE) is at a pivotal moment as on-chain data reveals thinning support below the $0.16 price level, according to a recent analysis by crypto analyst Ali (@ali_charts). The UTXO Realized Price Distribution (URPD) chart, sourced from Glassnode, highlights a significant supply cluster around $0.073245, representing 28.26 billion DOGE (18.63% of total supply), with a secondary cluster at $0.162615 (3.86 billion DOGE, 2.54%). This distribution suggests that if $0.16 fails to hold as support, the next major demand zone lies near $0.07, a level that could attract significant buying interest based on historical price action.

Technical Breakdown: Why $0.16 Matters

The URPD, an advanced on-chain metric, tracks the price at which DOGE last moved, offering a window into where holders might defend their positions. The current thinning of support below $0.16 indicates a potential supply vacuum, increasing the risk of a sharp decline if selling pressure mounts.

However, the $0.16 level remains a critical fortress, aligning with Fibonacci retracement levels and short-term moving averages like the SMA20, which hovers around $0.17. A breach below this could trigger a cascade toward $0.07, echoing the 2021 dip-buy bonanza that fueled DOGE’s meme-driven rallies.

Community Sentiment and the Road Ahead

On the flip side, bullish sentiment persists among some traders, with technical patterns like a potential cup-and-handle formation suggesting an imminent breakout above $0.18, targeting $0.25. Yet, with RSI(14) nearing oversold territory at 35, a rebound remains plausible if buying volume surges.

Investors should monitor on-chain flows and order book depth closely, as the outcome hinges on whether $0.16 holds or crumbles. For now, the market teeters on a knife-edge, with $0.07 looming as a make-or-break zone for Dogecoin’s near-term trajectory.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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