Dogecoin Teeters on the Brink: Is a 50% Crash Imminent? The Make-or-Break Chart Pattern Every Trader Must Watch

Dogecoin's price action is flashing red—and not just because Elon Musk changed his profile picture again. The memecoin that defied gravity for years now faces a technical setup that could send shockwaves through crypto portfolios.

The descending triangle from hell

DOGE charts show textbook bearish consolidation after rejecting its 2024 highs. Each lower high meets identical support—a classic breakdown pattern. When (not if) that support cracks, the measured move suggests a nauseating plunge.

Liquidity hunt underway

Whales are stacking sell orders at key levels, waiting to feast on overleveraged retail traders. The 24-hour trading volume spike hints at big players positioning for volatility—the kind that leaves bagholders crying into their "To the Moon" t-shirts.

Silver lining for degenerates

History shows DOGE thrives on disproving technicals. Another Musk tweetstorm or crypto market surge could turn this breakdown into a fakeout. But betting against gravity? That's a Wall Street hedge fund move—and we know how those usually end.

Falling Wedge Pattern Says Dogecoin Price Is Bullish

After the crash below the $0.15 support, the dogecoin price has now completed the formation of a falling wedge pattern, crypto analyst MyCryptoParadise revealed. Historically, a falling wedge pattern appearing on a chart is bullish for any asset, and Dogecoin is no different in this regard. Not only did the falling wedge pattern appear, but it did so right after a Change of Character formation, something that shows buyers are coming back to the table, according to the crypto analyst.

Other bullish formations include the RSI flashing a hidden bullish divergence. The MACD is also showing a bullish divergence, and all of these have culminated in perhaps one of the most bullish trends in recent times for the meme coin’s price.

Looking at the Dogecoin price movement over the last few days, this looks to be the case as some important support levels have been reclaimed. The price crash has also taken out lower liquidity levels in what the analyst calls a classic inducement grab. This has left only higher liquidity levels open. Therefore, if the buying continues, it will only lend strength to the already bullish formations and drive higher prices.

As the bullish factors line up, the likelihood of the dogecoin price moving up grows higher. The analyst explains that as long as Dogecoin is able to successfully print a bullish candlestick pattern here, then there is a strong risk-to-reward ratio of betting on a move up.

On the flip side of this, though, is the possibility that the altcoin does not play out into the bullish scenario. The bearish scenario here WOULD be if bulls are unable to hold support above $0.14 and the price ends up breaking down. In the case of another 15% crash where the price falls below $0.15, the analyst explains that the bullish thesis would be invalidated.

“If the price breaksdown and closes candle below this key support, the bullish scenario becomes invalid, and it’s better to wait for a more favorable structure to develop,” MyCryptoParadise explained.