Dogecoin at Crossroads. Could it be Heading for Another 19% Drop?

Dogecoin is hovering around $0.080 at the time of writing, down nearly 2% on Thursday. If the decline persists through the session, the memecoin will record its second consecutive day of losses.

Nonetheless, a closer look at price action over the past 12 hours reveals signs of recovery. The four-hour chart shows that DOGE hit a low of $0.077 in the early hours of Thursday. It retested the level within the past hour but rebounded, suggesting that buyers are attempting to defend the support.

The reasons behind the recent declines remain uncertain. However, the pullback coincided with the release of the U.S. Producer Price Index (PPI) and weekly jobless claims data. Both reports drew attention to the state of the U.S. economy, fueling bearish sentiment across risk assets.

The PPI report attracted particular attention after the figures came in above expectations. While analysts had anticipated a more modest increase, the reported figures pointed to stronger-than-expected producer price pressures. Such developments can revive inflation concerns and weigh on expectations for monetary easing, potentially creating additional headwinds for cryptocurrencies.

The releases also followed a bearish Consumer Price Index (CPI) report, adding to concerns about the economic outlook.

Cumulatively, Dogecoin lost nearly 5% between Wednesday and Thursday, with the decline coinciding with the broader market sell-off.

However, DOGE is not the only cryptocurrency experiencing a correction. The global crypto market capitalization fell by as much as 3% during the sell-off, highlighting the extent of the broader market weakness.

Despite attempts by buyers to recover some of the losses, technical indicators suggest that further downside remains possible. The recent rebound may offer temporary relief without necessarily marking the beginning of a sustained recovery.

Dogecoin Awaits Confirmation

The weekly chart presents a concerning outlook for Dogecoin. A bearish close this week would mark its third consecutive weekly decline. Following a loss of more than 9% last week, DOGE has shed another 6% over the past three days.

The continued decline is also affecting the asset’s technical structure. The weekly Bollinger Bands show that the first signs of weakness emerged after DOGE tested the upper band. Since then, the memecoin has retraced and briefly slipped below the middle band several times over the past two weeks.

DOGE is currently trading close to the middle band, which aligns with the simple moving average (SMA). This puts the asset at a critical juncture.

If the memecoin closes above this level and sustains the recovery, a move toward $0.10 could follow. However, a weekly close below the middle band would strengthen the bearish outlook and increase the likelihood of further losses.

Based on the current price, a decline of 16%–19% would place DOGE approximately between $0.065 and $0.067, assuming the move is measured from around $0.080. Such a scenario remains a possibility rather than a confirmed outcome, with the weekly close likely to provide a clearer indication of the prevailing trend.

In the short term, however, Dogecoin could see further buying activity. On both the daily and four-hour charts, the memecoin has rebounded from the lower Bollinger Band. Additionally, the Relative Strength Index (RSI) on the four-hour chart recently entered oversold territory, suggesting that selling pressure may be approaching exhaustion.

Together, these signals support the possibility of a relief rally. If buying momentum strengthens, DOGE could end the week around $0.085. However, such a recovery would not necessarily invalidate the broader bearish outlook unless the asset also reclaims key resistance levels.

Meanwhile, NEAR Protocol has emerged as one of the biggest gainers over the past 24 hours, rising more than 9% after recovering from a decline of approximately 7%. Like DOGE, NEAR experienced the sell-off and subsequent rebound affecting the broader crypto market.

Despite the recent recovery across several assets, it remains to be seen whether the buying momentum will carry into the coming week or give way to renewed selling pressure.

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