Dogecoin's price plummeted on Monday, mirroring a broader decline in the crypto and stock markets.

The leading meme coin, Dogecoin (DOGE), reached a low of $0.1628, its lowest point since March 12th, representing a decline of over 66% from its December peak.

This downturn coincided with investor apprehension ahead of Donald Trump's announced "Liberation Day," featuring reciprocal tariffs on numerous US trading partners, fueling recession fears. This anxiety rippled through both crypto and stock markets, with the crypto fear and greed index falling to 24 (fear zone) and the stock market gauge plummeting to 18 (extreme fear zone).

However, the increased likelihood of a recession could potentially trigger Federal Reserve intervention. Historically, the Fed has responded to significant crises, such as the COVID-19 pandemic and the Global Financial Crisis, by lowering interest rates and implementing quantitative easing, potentially benefiting Dogecoin and other cryptocurrencies.

Dogecoin Price Technical Analysis

DOGE Price Chart | Source: crypto.news

The daily chart reveals a sustained downtrend for DOGE over the past few months, falling from a high of $0.4836 in December to today's $0.1630. The price has fallen below the 200-day Exponential Moving Average, indicating bearish dominance. Furthermore, DOGE broke through key support at $0.2260 (March 28th, 2023 high), which also formed the upper boundary of a cup and handle pattern observed in 2023.

While $0.1430 (July 21st high) marked this year's lowest point, it also formed a falling wedge pattern – a bullish reversal signal. The price has already surpassed the wedge's upper boundary.

The current pullback suggests a potential double-bottom pattern forming at $0.1430, with a neckline at $0.2057. This scenario could see DOGE decline to $0.1430 before the tariff announcement, followed by a rebound in April, potentially reaching $0.2628 (a 60% increase from current levels).

Conversely, a breach of the $0.1430 support level would invalidate this bullish outlook.