Bearish Outlook for Dogecoin: Analyst Predicts 59% Decline

A digital asset analyst forecasts a significant 59% decline in Dogecoin (DOGE) price due to bearish on-chain data and a challenging market environment. The overall meme coin market is also facing declines, with several assets reporting substantial losses. Despite potential whale accumulation indicating future growth, current market sentiment remains pessimistic, especially following external economic influences such as new tariffs.

A digital asset analyst has highlighted bearish signs in Dogecoin (DOGE) based on on-chain data, indicating a potential correction. This downturn follows a broader decline in United States tech stocks and cryptocurrency prices as the market reacts to newly imposed tariffs, causing significant losses in the meme coin sector.

Expert trader Ali Martinez has forecasted a dramatic 59% drop in DOGE price, predicting it will fall to $0.060. Currently trading at $0.1514, DOGE has broken previous support levels after experiencing high volatility. In the past week alone, DOGE has seen a 10% decrease, raising sell pressures amidst declining market conditions.

Following Martinez’s forecast, initial responses have been negative as holders attempted to sustain market support. A potential 59% decline undermines short-term expectations of a recovery towards $0.5. Earlier this year, DOGE proponents had even targeted a price of $1, spurred by increased institutional investments in altcoins.

Despite the recent dip, some signs of whale accumulation in meme coins have emerged. In March, DOGE surged by 7.5% after significant purchases of 220 million tokens were recorded. Enthusiast Javon Marks noted the potential for a 270% price increase, citing the asset’s formation of higher lows over time as a bullish indicator.

The meme coin market is currently experiencing a downturn in response to Bitcoin’s price drop, leading to reduced optimism. Meme coins typically exhibit volatility due to investor sentiments rather than underlying fundamentals. Following President Trump’s tariffs, the total meme coin market cap has decreased by 6% to $45 billion, with many assets suffering considerable losses.

Notable declines include Shiba Inu’s 10.2% drop and losses of 12% and 11.1% for PEPE and BONK respectively. The TRUMP token experienced a significant 22% downturn in the same period, attributed to large holders’ sell-offs. Currently, it trades at $7.72 with a total market cap of $1.54 billion.