Dogecoin Trap Shows A Major Crash, But How Low Will The Price Go?

Crypto analyst Crypto Paradise has warned that a Dogecoin trap is on the horizon, with the meme coin likely to suffer a crash soon. He pointed to a bearish pattern that signaled DOGE could drop to around $0.08 despite its recent reclaim of the $0.10 level. 

Analyst Warns Of Dogecoin Trap With A Crash Imminent

In a TradingView analysis, Crypto Paradise predicted a potential sharp downside move for Dogecoin, although he noted that some market participants may just call it a healthy pullback. He revealed that the meme coin had formed a classic Volume Spread Analysis pattern, which began with a buying climax followed by a climactic action bar. 

The analyst noted that this combination typically shows a distribution in which institutional investors use aggressive upward spikes to offload positions amid retail enthusiasm. Crypto Paradise added that when the crowd feels confident, smart money is already exiting their positions. 

Source: Chart from Crypto Paradise on Tradingview

Notably, his analysis comes amid Dogecoin’s brief reclaim of the psychological $0.10 level today, with the meme coin rallying as Bitcoin broke above $79,000. However, Crypto Paradise’s prediction indicates that DOGE is still likely to see another crash, which could send the meme coin to new lows. 

DOGE Could Drop To Around $0.08917

Crypto Paradise stated that if the bearish momentum in Dogecoin continues, the next major downside target is around $0.08917 and could be reached sooner than most expect. Commenting on , he noted that DOGE has swept the upper trigger line of the buying climax but has failed to sustain higher levels, with a candle breaking below the lower trigger line.