Dogecoin Price Teeters on the Edge: Will It Crash or Soar?

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Bitcoin BTC$95 935 is down at $96,300, causing a massive pullback in the meme coins. The meme coin’s market capitalization is down to $70.37 billion, with Dogecoin DOGE$0.26 price falling 3% in the past 24 hours.

While sustaining the recently re-established dominance above the $0.25 psychological mark, Dogecoin is hanging by a thread. With bulls nearing a crossroads near the 200-day EMA line, will the broader market pullback drop Dogecoin prices to a new low in 2025? Let’s find out.

Dogecoin Price Hits Crossroads at 200D EMA

In the daily chart, Dogecoin price action reveals a quick bullish recovery over the last week, sustaining dominance above the $0.24 support level. Dogecoin recovered 6.7% last week.

However, the bullish resurgence failed to surpass the dynamic resistance line of the 20-day EMA. With a higher price rejection and a morning star pattern over the weekend, Dogecoin is now trading at $0.2630.

DOGE creates another Doji candle with a minor pullback of 1.01%. Furthermore, Dogecoin price struggles to balance above the 200-day EMA line.

As the short-term price movement reveals a crossroad for Dogecoin, the prevailing downfall continues to create a lower-high trend. Despite this, the momentum indicator MACD gives a positive sign.

With the recent bullish crossover and a rise of positive histograms, the MACD indicator hints at a bullish recovery. However, the dynamic lines are on the verge of giving a bearish crossover between the 50- and 100-day EMA lines.

MVRV Death Cross Against Hopes of DOGE ETF Approval

As the Dogecoin price action hints at a double-edged position, a recent tweet from Ali Martinez, a crypto analyst, warns of a sharp pullback. Highlighting the recent death cross between the MVRV ratio and the 200-day EMA line, Ali Martinez expects the Dogecoin price to fall.

#Dogecoin $DOGE just saw a death cross between the MVRV Ratio and its 200-day MA. The last two times this happened, prices dropped 26% and 44%.

— Ali (@ali_charts) February 17, 2025

As per historical trends, the previous two death crosses – in July 2023 and June 2024 – resulted in a pullback of 26% and 44%, respectively. With the increasing intensity of these pullbacks, the recent death cross could lead to a downfall of 50% or more.

Despite the recent death cross between the MVRV ratio and Dogecoin prices, Ali Martinez also highlights a potential bullish reversal in the meme coin. Currently, in the weekly chart, the Dogecoin price action reveals a parallel channel at play.

If #Dogecoin $DOGE is following a parallel channel, a breakout above $0.58 could set the stage for a move toward $1.80 or even $5.80!

Go to @SimpleFXcom, claim your $5,000 bonus via my link , and get some before it’s too late.

— Ali (@ali_charts) February 16, 2025

Considering Dogecoin breaks above $0.50, the bullish recovery could scale to new heights. From the bullish perspective, the optimistic targets extend above the $1 psychological milestone, reaching between $1.80 and $5.80.

While these bullish numbers may seem unrealistic, the increasing chances of a DOGE ETF in the US market could drive the demand for the biggest meme coin. Currently, as per data from PolyMarket, users anticipate a 75% chance of a DOGE ETF getting approved in 2025.

As Dogecoin hangs near the 200-day EMA line after the recent morning star pattern, a pullback to $0.2465 is highly possible. However, if the bulls manage to avoid a closing price below the 200-day EMA line, this bullish continuation could test the overhead supply ceiling at the $0.30 psychological mark.

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2025-02-17 10:59