Dogecoin faced a challenging first quarter of 2023, with a nearly 46% decline. This performance echoes the cryptocurrency's worst start in 2018. Will investors anticipate a similar scenario in the coming months?
After making impressive gains in 2022, reaching historical highs, Dogecoin (DOGE) seems to have lost some of its momentum at the beginning of 2023. According to Cryptorank data, the largest memecoin has indeed recorded a decline of nearly 46% in the first quarter, its worst performance during this period in 7 years.
Could #Dogecoin pullback to $0.3ish level before surging to $3?
— Trader Tardigrade (@TATrader_Alan) November 25, 2024
By comparing the two cycles from 2018-2021 and 2021-2025, $Doge is moving in a very similar pattern.
And… it did experience a significant pullback before the pump.pic.twitter.com/AyvEbiFvpH
This collapse echoes the crash suffered by DOGE in 2018, when the crypto had lost nearly 69% of its value in the first three months of the year. At that time, the decline had continued into the second quarter (-11.5%), before a spectacular rebound in the third (+138%). A pattern that current investors fear might repeat itself.
Despite this severe correction, crypto analyst Ali Martinez notes that Dogecoin continues to hold above the lower boundary of its ascending channel. According to him, an increase in demand at this level could propel DOGE towards the middle or upper range, which includes levels between 4 and 7 dollars.
— Master Kenobi (@btc_MasterPlan) March 30, 2025
DOGE at the end of Q3 2024 vs DOGE at the end of Q1 2025 #sanki https://t.co/I1M1N8iM0J pic.twitter.com/QVFhDqLWdO
On the other hand, trader Tardigrade believes that Dogecoin may have already hit its lowest point, drawing on precedents from September 2024. A scenario that could herald a bullish reversal for the memecoin. Analyst Master Kenobi shares this view, anticipating a new breakout similar to the one observed at the same time last year.
At the time of writing, Dogecoin is trading around 0.17 dollars, up 2% over the last 24 hours. After starting 2023 on a positive note (+4% in January), the token quickly plunged in February (-38.5%) and continues to lose ground in March (-17.5%).
A bleak picture, reminiscent of the bearish episodes of 2018. Will Dogecoin manage to bounce back as it did 5 years ago? The next steps are crucial for the future of the largest memecoin in the industry.
If DOGE manages to reclaim the 0.22 dollar resistance, hopes for a new bullish momentum can return. However, to trigger a significant uptrend, it must especially regain its 200-day moving average at 0.255 dollar. This represents a 50% increase. Additionally, the Ichimoku indicates a buy signal, with invalidation below 0.14 dollar.
Here is a practical guide to buy DOGE on the Weex platform:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
