Analyst Warns of Potential Dogecoin Dip Followed by a Massive 400% Surge

Market analysts are predicting a significant volatility spike for Dogecoin (DOGE), suggesting the meme-inspired cryptocurrency could experience a sharp decline before embarking on a staggering 400% rally. This potential rollercoaster movement highlights the inherent unpredictability of crypto markets, particularly for assets with strong community backing like DOGE. Traders are advised to monitor key support levels and market sentiment closely, as such dramatic swings could present both risks and opportunities for investors. The anticipated price action may be influenced by broader market trends, Bitcoin’s momentum, and Dogecoin’s unique position as a cultural phenomenon in the crypto space.

Possible 40% Fall Before The Huge Rally

A fresh analysis published on TradingView by SwallowAcademy indicates Dogecoin might see a dramatic drop before any significant price increase. The analyst looked into DOGE’s price action compared to Tether (USDT) on daily charts, where the meme coin has been known to be extremely volatile.

Their plots indicate a sudden spike in the beginning of 2024 followed by a decline from highs around $0.23, then another downslide to $0.09 mid-year before recovering above $0.45.

SwallowAcademy thinks that the same trend may develop in 2025. However, their prediction is that Dogecoin may decline another 40% to around $0.09, creating a zone of support before, possibly, skyrocketing 400% to $0.45. The price stands at over $0.15 currently, and the analyst is holding out for the anticipated drop to $0.09.

The ‘False Break’ Pattern – What It Means

A standalone analysis by Trader Tardigrade indicates Dogecoin’s initial “false break” since December 2024. The cryptocurrency has, in general, traced a downtrend of lower highs and lower lows, which are common bearish market indicators. After dropping to $0.13 on April 7, though, the price did bounce briefly before declining once more.

Trader Tardigrade reads this as a “false breakdown” – potentially indicating the end of the downtrend. With prices remaining above the support line for a few days, this pattern may indicate an imminent bullish reversal. Based on their analysis, Dogecoin may aim for $0.42 if the reversal occurs.

#Dogecoin Makes a False Break for the First Time Since Dec 2024

It’s staying above the support line for days, confirming the characteristics of a false break. A new $DOGE bull run could start from this false breakpic.twitter.com/e8ui5FuFxV

— Trader Tardigrade (@TATrader_Alan) April 15, 2025

Statistics from IntoTheBlock show trends in Dogecoin holder behaviors that are differing. Long-term holders (more than one-year holders) lost 2.65% last month. The mid-term, or “Cruisers,” as they’ve been labeled by the report, who hold their coins for between one and twelve months, lost even more by 12%.

On the other hand, short-term holders who held for under a month increased by 107%. This realignment is an indicator of increasing speculative demand as opposed to long-term confidence, possibly resulting in enhanced short-term price volatility.

In spite of the conflicting signals from general users, big holders seem more and more interested in Dogecoin. The statistics indicate a consistent increase in big holder inflows – up 5.30% in the last week and a whopping 324% in the last month.

Featured image from Pexels, chart from TradingView