Despite maintaining its position as the leading meme coin in the market, Dogecoin has suffered immensely in the market decline. It failed to reach a new all-time high in the 2024-2025 market run-up and has crashed tremendously as selling ramped up. Even now, the bleed seems not to have stopped, with crypto analyst MyCryptoParadise warning investors that the recent recovery could be a crash.
Why The Dogecoin Pullback Could Be Temporary
The analysis focuses on Dogecoin’s recovery and its failure to break above any important levels. Instead, the crypto analyst explains that the meme coin is actually still respecting the descending resistance trendline. This failure to break shows that DOGE is still experiencing significant structural weakness.
Another important thing to note is that the price is still holding inside the 1-Hour supply zone, as well as the order block and Fair Value Gap (FVG) zone. This means that the likelihood of the Dogecoin price moving downward is still higher than the possibility of a sustained recovery.
This also spreads into the volume spread, where there has been a plateau in buying action. This trend, the crypto analyst points out, shows that there is distribution happening for DOGE. Thus, it seems the big players are using these spikes to actually sell their holdings. This means that the recovery is unlikely to last long as the price just pumps into more dumping.
Mapping Out The DOGE Price Weakness
In addition to the points above, MyCryptoParadise also outlines a key weakness confirmation that has popped up on the Dogecoin chart. This was the fact that the meme coin was still under the upper trigger line of the buying climax. In a case like this, it points to supply being way too strong that demand cannot absorb it completely.
If this weakness continues, then the recovery could be stopped dead in its tracks. The first support of the downward move would be at $0.09, where buyers would have a chance to make their stance. However, a break below this level would trigger a move toward $0.08030.
Nevertheless, there is still a chance that the bulls could take over, and the analyst says that this can only happen if the Dogecoin price can break above the resistance at $0.10875. To completely invalidate the bearish scenario, this break would have to be done with strong momentum, and that would trigger a bullish continuation.
Featured image from Dall.E, chart from TradingView.com
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Author: Scott Matherson
