One Slip And Dogecoin Could Plunge Back Into A Bear Market: Analyst
Overview
Dogecoin’s multi-year recovery trend faces significant pressure as it slips below a critical ascending support level. This development, highlighted by trader and analyst Rekt Capital, raises concerns about the cryptocurrency potentially falling back into a bear market.
Current Situation
In a recent analysis, Rekt Capital shared a chart illustrating the DOGE/USDT pairing, created on TradingView. The chart tracks Dogecoin’s performance from its peak in 2021 through the subsequent bear market that lasted until 2023, followed by a recovery phase. A rising trendline, which has defined Dogecoin’s multi-year technical uptrend, currently sits just below the $0.18 mark.
As of the latest monthly candle, Dogecoin is trading around $0.16355, positioned beneath this critical trendline and near a horizontal support level at approximately $0.159. This horizontal support is historically significant, having shifted roles between resistance and support over the past two years.
From May to October 2024, this $0.159–0.16 range acted as a resistance ceiling, rejecting multiple attempts at upward movement. A breakout above this level in October 2024 was followed by a substantial price increase, nearly tripling Dogecoin’s value from around $0.16 to a high of $0.4843 in December. In 2025, this same price zone transitioned into a crucial support level, where monthly candles showed intramonth dips but consistently closed above, confirming its role as a major structural floor.
What to Watch
The significance of the current retest of the $0.159–0.16 area cannot be overstated. With approximately half of the month remaining, the current red November candle has already lost the rising trendline near $0.18 and is now reliant on the horizontal support to prevent further declines. In the context of a monthly chart, the critical factor is not just the intramonth movements but the final closing price of the candle.
If Dogecoin manages to reclaim and close above the trendline, it could maintain the pattern of higher lows that has characterized its multi-year uptrend. Conversely, a monthly close below the horizontal support level would signal a failure of both the ascending support and this historically significant price floor, potentially undermining the broader bullish structure.
Impact on the crypto market
- Dogecoin’s position below key support levels raises concerns about a potential return to a bear market.
- The historical significance of the $0.159–0.16 support area could influence trading behavior and market sentiment.
- A decisive monthly close below current support may lead to increased bearish sentiment and selling pressure in the broader market.
- Conversely, a recovery above the trendline could restore confidence among investors and traders, potentially stabilizing the market.
- The developments in Dogecoin may serve as a barometer for the overall health of the cryptocurrency market, affecting investor sentiment across various digital assets.
Updated: 11/18/2025, 1:48:41 AM
