Dogecoin, the original meme coin, has seen a sharp decline, falling to $0.225 per coin after a 7% drop in the past 24 hours.
The price dipped as low as $0.2239, nearing its lowest point of 2025. Over the past week, DOGE has lost nearly 18% of its value, making it one of the worst-performing top cryptocurrencies.
Crypto analyst Ali Martinez, who previously predicted a $4 price target for Dogecoin, now warns that the coin could fall further if it loses a key support level.
"Is Dogecoin following PEPE? If so, a breakdown below $0.31 could trigger a correction toward $0.20 for DOGE!" Martinez wrote on X.
He also pointed out that network activity has dropped to its lowest level since October 2024, with only 66 whale transactions and fewer than 60,000 active addresses per day.
Can Dogecoin hold above $0.19?
Despite the recent downturn, Martinez suggests that if Dogecoin maintains a key support level, it could see another rally.
“Dogecoin has been trading inside an ascending channel since 2014. Dogecoin has tended to rebound from this channel's lower support trendline to the resistance trendline. From this level, it tends to drop back to the support trendline and then rebound again, repeating the whole cycle,” he explained.
"Dogecoin recently rebounded from the support trend line. If history repeats as long as Dogecoin holds above 19 cents, it could rally to the resistance trend line at around $4," he added.
Market sentiment turns bearish
Dogecoin was flying high just months ago after billionaire entrepreneur Elon Musk reignited interest in the meme coin. In December, DOGE hit a three-year high of $0.48, but it has since fallen significantly.
DOGE remains the eighth-largest cryptocurrency by market cap but has been struggling alongside the broader meme coin market.
Data from CoinGecko shows that nearly every major meme token is in the red. Shiba Inu (SHIB) is down 9% in the last 24 hours, while Pepe (PEPE) and Bonk (BONK) have lost over 14% each.
Adding to the bearish outlook, open interest in Dogecoin has dropped to just $2.16 billion, the lowest level of the year, according to CoinGlass. This suggests traders are losing confidence in the coin's ability to rebound.
Dogecoin remains a significant part of Musk’s influence in the crypto space. The billionaire, who once fueled its rallies with tweets, now runs a U.S. government department called the Department of Government Efficiency, or DOGE.