The price of Dogecoin has plummeted in tandem with the broader cryptocurrency market, resulting in the breach of a critical support level. This decline below $0.18 indicates a potential shift in market dynamics, possibly leading to further downturns. A cryptocurrency analyst had anticipated this market drop, predicting it before it occurred. Nevertheless, there is a silver lining for Dogecoin, as longer-term outlooks suggest more favorable possibilities as time progresses.
Crypto analyst Master Ananda shared insights on the future trajectory of Dogecoin in a recent post on TradingView. At the time of his analysis, Dogecoin was trading near the $0.20 mark, with the market appearing to maintain an upward trend. Despite the seemingly positive sentiment, the analyst warned of a potential pullback.
According to Master Ananda, while the short-term outlook for Dogecoin remains bearish, the long-term perspective still holds bullish potential. He highlighted a correction that began in December 2024, when Dogecoin started forming lower highs, indicating growing bearish sentiment in the market. With the recent drop below the $0.18 support level, he noted this as a continuation of the downward trend that initiated on May 11 following a market recovery.
Looking ahead, Master Ananda estimates that the current correction for Dogecoin will find a bottom above the April 7 lows, which were around $0.13. This suggests that the meme coin could stabilize around $0.15 before initiating a recovery. He encourages investors, particularly those holding positions, to remain patient until the market stabilizes, after which he anticipates a bullish turn for the altcoin.
For traders considering short positions, he advises caution and recommends against holding trades for extended periods due to the limited trading range. "We are very likely to see a higher low compared to April 7," Master Ananda stated. However, he cautioned that if too many leveraged positions are active, the market might create a long wick that breaches support before recovering the following day.
