DOGE Price Analysis: Meme Coin Market Cap Sees Significant Decrease Following a Major Meltdown in the Past Two Months

Standing strong as the largest meme coin, Doge is down 20% on a weekly scale. Looking at the past months of sells, Doge appeared to have lost roughly half of the late 2024 gains.

Meme Coin Cap Sees Major Decrease

The meme coin market capitalization has witnessed a significant decline of 20% over the past week, largely influenced by a major crypto market meltdown observed in the past two months.

Dogecoin (DOGE), being the largest meme coin, has also faced the heat of this market downturn. Despite its immense popularity, DOGE has slipped into bear territory, showcasing a 20% loss on a weekly scale.

A closer examination of Doge's price movements reveals that the coin has lost roughly half of the gains it managed to accumulate late in 2024. While the meme coin is currently taking a break from the early week collapse, it appears to be trading bearishly on the daily chart but still within a bullish zone in the mid-term.

After bouncing sharply from the $0.2 level, Dogecoin has seen a brief pause in selling, which brought trading to a short consolidation phase on a lower timeframe. However, the price is still showing weakness on the daily chart.

Dogecoin Price Analysis DOGE/USD Chart by Tradingview

Crucially, a recent price rejection has hinted at a potential increase. If Doge were to repeat the mid-December pattern that brought a month's relief in the market, we might see a nice recovery above the $0.3 level soon.

Failure to recover above this level might lead to another leg down, as that could paint a bigger bearish scenario in the short term. However, due to the market balance, it is yet to decide on the next direction.

But zooming out, Doge is still maintaining a lower low and lower high pattern. If this pattern continues, we could see further declines until it finds a strong support level.

DOGE’s Key Level To Watch

The holding support level right now is $0.25, followed by the $0.20 low – tested on Monday. The next target support level to consider for a dip is $0.16.

Repeating the previous recovery pattern could push the price to the $0.30 level. If such a recovery were to be sustained, it could propel buying to $0.4 before resuming bearishness. A significant push above $0.48 should set the stage for a new bullish phase.

Key Resistance Levels: $0.30, $0.4, $0.48

Key Support Levels: $0.25, $0.20, $0.16