How Likely Is a Drop for Dogecoin (DOGE)? Latest Indicators & Insights

Jakarta, Pintu News – The leading meme asset, Dogecoin (DOGE), has experienced a steady price increase over the past two weeks, moving in an ascending parallel channel pattern on the daily chart.

As of October 7, DOGE was trading at approximately $0.2605, registering a 17% gain in the last 14 days, which helped drive positive sentiment in the meme coin market.

However, there are warning signs. One of the key momentum indicators is showing a bearish divergence, signaling that the DOGE’s rally may not be supported by natural market forces and could potentially see a correction.

In addition, whales appear to be scaling back their accumulation activities, further weakening the prospects of a price increase in the near term.

DOGE Price Strength Faces Test

Although the DOGE recorded double-digit gains in the past two weeks, the Chaikin Money Flow (CMF) indicator – an important tool that measures capital inflows and outflows – actually showed a decline and formed a bearish divergence. Currently, the CMF value is below the zero line, at -0.08 to be precise.

Read also: Dogecoin Price Plunges 7% Today — Analyst Sees Potential for 37× Surge

A bearish divergence occurs when the price of an asset continues to rise, but the CMF indicator actually moves downwards. This indicates that although the price is increasing, there is less capital flow into the asset.

This phenomenon is generally an early sign of a potential price correction, as short-term momentum could weaken if buying activity doesn’t pick up again.

In addition, on-chain data also shows a decrease in whale activity. Based on data from Nansen, large investors holding more than $1 million worth of DOGE have reduced their holdings by 1% in the past two weeks. Currently, this group of large investors holds around 4.43 million DOGE.

Whales play an important role in maintaining market momentum. When their demand decreases while prices are rising, it often reflects a lack of confidence in the rally – a warning signal for traders who expect DOGE prices to continue climbing.

Can New Demand Save Meme Coin?

If buying pressure continues to weaken, DOGE prices are at risk of a short-term correction towards the lower limit of its ascending parallel channel, with the nearest support level at $0.2574.

Read also: Whale Investor Opens $1.5 Million Long Position as XRP Sets Its Sights on the $3.65 Target

If this level fails to be maintained, the price of DOGE has the potential to drop deeper until it reaches the $0.2018 area.

On the contrary, if there is a new wave of demand in the market, DOGE has a chance to break the upper limit of the channel, which is currently the resistance area at $0.2797.

If this breakout is successful, the price of DOGE could continue its rise towards the next target around $0.2980.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. Doge Price Rises, But Trouble Looms. Accessed on October 8, 2025