Dogecoin price risks a 60% crash as a rare risky pattern forms

Dogecoin's Recent Price Crash and the Looming Death Cross

Dogecoin (DOGE) has experienced a significant price decline in recent months, reaching a low of $0.019 on Sunday—its lowest point since November 7, 2023. This represents a drop of over 60% from its November high.

This downturn mirrors the performance of other meme coins, with popular tokens like Shiba Inu, Pepe, and Dogwifhat also experiencing declines of over 50%.

Elon Musk's influence, a key factor in Dogecoin's past success, has also come under pressure. Reports indicate a substantial decrease in his net worth, impacting investor sentiment.

Further complicating the situation are reports of increasing tensions between Elon Musk and Donald Trump. News outlets suggest friction between Musk and cabinet officials, potentially leading to Musk's departure from a government position. Kalshi data suggests a 54% probability of this departure before July 2026.

Dogecoin's popularity surge in 2021 was largely attributed to Musk's endorsements. His potential departure from his government role could negatively impact Dogecoin's price.

Dogecoin Price Analysis

[Image: DOGE price chart | Source: crypto.news]

The daily chart indicates a sustained downtrend, with investors remaining cautious. A death cross pattern—where the 50-day and 200-day Exponential Moving Averages intersect—is imminent. Historically, this pattern has preceded significant price drops (e.g., a 40% drop in July 2024).

DOGE has fallen below the 61.8% Fibonacci Retracement level at $0.2360, suggesting bearish momentum. The MACD and Relative Strength Index also point to continued downward pressure. The next key support level is $0.1680 (78.6% retracement). A break below this could trigger a further decline to $0.08, representing a 60% drop from the current price.