Dogecoin Price Dips 6% as Network Activity Hits October Lows, Analyst Predicts Surge to $4

Highlights:

• DOGE slips 6% to $0.2291 as network activity hits an October low with 66 whale trades.
• Experts eye $4 if DOGE holds $0.19, citing bullish wedge patterns.
• Grayscale and others file for Dogecoin ETFs, sparking rally potential.

The Dogecoin price has plunged 6% in the last 24 hours to trade at $0.2291 as of 4:30 a.m. EST on a 78% pump in tradingview to $1.3 billion. The price drop in DOGE follows the drop in network activity to its lowest levels since October last year, with 66 whale transactions and fewer than 60,000 daily active addresses. It indicates muted bullish strength amidst overall uncertainty in the broader markets.

Open interest in futures has fallen by 3.9% to $2.15 billion, while daily liquidations have increased to $9.23 million, with long liquidations taking up $8.62 million. Trading volume, however, is higher by 60% to over $1.23 billion.

The only way #Dogecoin $DOGE goes parabolic is if it holds this key support level! pic.twitter.com/TfO83PmWTp

— Ali (@ali_charts) February 21, 2025

Analyst Ali Martinez is hopeful that as long as DOGE remains above $0.19, it can reach $4. Additionally, Trader Tardigrade notes DOGE is near completing a fourth falling descending wedge, a buy signal in technicals. Previous breakouts from the same chart patterns have yielded 88%, 208%, and 445% returns.

Adding to the drama, several firms, like Grayscale, CoinShares, and WisdomTree, have filed Dogecoin ETFs, with the SEC officially considering Grayscale’s. If they get approved, a Dogecoin ETF would provide regulated exposure to the cryptocurrency and inject huge bullish energy, potentially triggering a big price rally.

DOGE Drops to $0.2282 as Bearish Pressure Intensifies

Dogecoin (DOGE/USD) is undergoing a major price retracement, trading at $0.2282, 5.97% lower daily. The price opened at $0.2428, hit a daily high of $0.2442, and fell to a low of $0.2267, showing strong bearish pressure. In the last few months, DOGE has been trading in a well-established bearish channel that began in mid-November after an explosive rally drove the price to almost $0.50.

Since then, the price has been declining steadily, forming lower highs and lower lows. The bearish character means that the sellers have been in control. Still, recent price action suggests that DOGE is testing a significant support level between $0.2161 and $0.2282, which has been the region where buying interest existed.

The 0.727 Fibonacci retracement level is close to $0.2161, which is also very close to the current support level. This Fibonacci level is an important point for possible reversals in price movement. If DOGE stays above this level, there is a high chance of a bullish reversal, which could lead to a bearish channel breakout.

The price would then recover to $0.30 as an initial target, while the next resistance level at $0.3877 lies in wait should momentum continue. A break above the channel would signify a shift in market sentiment, with bulls gaining control and propelling prices higher.

Dogecoin Price Hangs in Balance: RSI Signals Oversold

Adding to this positive argument is the fact that the Relative Strength Index (RSI) stands at 31.21, slightly below the oversold level of 30. When the RSI hits this level, it typically means that the currency is undervalued and poised to bounce back. Additional increasing buying pressure could push the RSI above 35, further confirming a probable trend reversal.

Dogecoin is at a make-or-break point, where it can either confirm a bullish reversal or continue to move in a downward trend. Suppose the price can resist below $0.2161. In that case, the traders should wait for confirmation signals such as higher trading volume, a bullish candlestick pattern, or an RSI bounce to validate a potential rally.

If the bearish pressure is strong and the price drops below the support, DOGE may lose further, and the next decline target will be $0.15. Therefore, the traders must carefully watch the price action closely before deciding to trade.