Crypto analyst Crypto Paradise has warned that a Dogecoin trap is on the horizon, with the meme coin likely to experience a crash soon. He pointed out a bearish pattern indicating that DOGE could fall to around $0.08 despite its recent recovery from the $0.10 level.
Analyst warns of Dogecoin fall with impending crash
In one TradingView AnalysisCrypto Paradise predicted a potentially sharp downward move for Dogecoin, although he noted that some market participants might call this a healthy pullback. He revealed that the meme coin had been formed a classic Volume Spread Analysis pattern, which started with a buying climax, followed by a climactic action bar.
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The analyst noted that this combination typically shows a distribution in which institutional investors use aggressive upside to unload positions amid retail enthusiasm. Crypto Paradise added that when the public feels confident, smart money is already exiting their positions.
Notably, his analysis comes amid Dogecoin’s brief recovery from the psychological $0.10 level today, with the meme coin rallying as Bitcoin broke above $79,000. However, Crypto Paradise’s prediction indicates that DOGE is still likely to experience another crash, which could send the meme coin to a new low.
DOGE could drop to around $0.08917
Crypto Paradise stated that if bearish momentum in Dogecoin continues, the next major downside target is around $0.08917 and could be reached sooner than most expect. Comment on the current price actionhe noted that DOGE has reached the upper trigger line of the buy climax but has failed to hold higher levels, with a candle breaking below the lower trigger line.
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The analyst explained that this is a classic confirmation that supply dominates. Meanwhile, from a structural perspective, he noted that Dogecoin is the descending resistance trend line and has not been able to break out above it. Crypto Paradise noted that this rejection is likely due to persistent structural weakness.
At the same time, Crypto Paradise noted that the market momentum has shifted to the downside and the overall structure is bearish, further strengthening the bear case for Dogecoin. In line with this, the analyst stated that DOGE risks a decline as long as the price remains within the 1-hour order block and the fair value gap zone.
The immediate minor support for Dogecoin is around $0.09290 which will act as the first downside magnet if sales pressure continues to exist. On the other hand, Crypto Paradise stated that this bearish outlook could be invalidated if DOGE manages to break above the key resistance at $0.10338 with a strong momentum candle.
At the time of writing, the Dogecoin price is trading around $77,700, down in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com