Crypto analyst Cheds has issued a stark warning about Dogecoin's (CRYPTO: DOGE) potential for a "large drop" amid the ongoing market correction.

What Happened: Prominent crypto analyst, known as Cheds, on X (formerly Twitter), has issued a warning about Dogecoin's (DOGE) potential decline amid the ongoing market correction.

The strategist believes that DOGE could see a significant drop if it fails to hold a critical support level. According to Cheds, Dogecoin might face a sharp correction of around 33%, pushing its price down to the $0.11-$0.12 range if it loses stability at $16.

He suggests that the current market structure doesn't offer much optimism for DOGE, indicating that the memecoin could be heading for a lower bottom before finding solid ground.

According to Cheds, during a recent strategy discussion, he emphasized that the chart looks unfavorable, highlighting a strong descending supply trend.

"Little reason to be optimistic on $DOGE ... Chart signals a potential move to test lower prices," said Cheds in one of his recent posts.

Dogecoin Price Action: At the time of writing, Dogecoin is trading at $0.172 after a 16% decline in the past 7 days.