Dogecoin (DOGE) could see a significant 30% price correction in the coming weeks as technical indicators and macroeconomic headwinds overpower the Dogecoin Foundation’s latest efforts to support the memecoin. The market remains sceptical despite the launch of the “Official Dogecoin Reserve,” and the charts point to further downsides.
Bear Flag Pattern Signals Breakdown
A prominent bear flag pattern on the DOGE/USD daily chart sets the tone for this bearish forecast. This pattern emerged following a sharp decline from the $0.214 high in late 2024. Since then, Dogecoin has moved within a tight range, forming a flag between a descending upper trendline and a lower boundary near $0.137.
On March 24, Dogecoin tested the upper trendline but failed to break above it, closing the day with a red candle. This rejection strengthens the case for a breakdown. If DOGE breaches the lower trendline, analysts expect the price to fall toward $0.11, aligning with the bear flag’s projected target based on the prior drop’s height.
Additionally, Dogecoin’s Relative Strength Index (RSI) has fallen to 47.45, down from 58.71, indicating weakening buying momentum. Meanwhile, a recent “death cross” — where the 50-day EMA crossed below the 200-day EMA — further validates the bearish outlook.
Dogecoin Reserve Fails to Boost Market Confidence
To stabilize its volatile price, the Dogecoin Foundation announced the formation of the Official Dogecoin Reserve on March 24, 2025. The foundation began by acquiring 10 million DOGE to attract institutional investors and position Dogecoin as a more reliable payment asset.
However, the market responded with caution. Despite the announcement, DOGE declined intraday on March 25, suggesting many traders viewed the news as an opportunity to take profits rather than a reason to buy in.
Macroeconomic Concerns and Musk’s Influence Deepen Pressure
Wider economic uncertainty has also weighed on Dogecoin. U.S. President Donald Trump’s aggressive tariff policies have triggered volatility across financial markets. This risk-off sentiment continues to drag down high-risk assets like DOGE.
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Moreover, Elon Musk’s link to Dogecoin remains a double-edged sword. While Musk once bolstered DOGE with his endorsements, his current role in Trump’s administration and Tesla’s recent collapse have had the opposite effect. Tesla shares have nosedived over 50% since late 2024, with a 15% drop on March 11 alone, wiping out $16 billion in value.
Given Dogecoin’s historical tendency to follow Tesla’s price movement, this crash has dented long-term investor confidence in DOGE.
Conclusion
While the Dogecoin Foundation’s reserve initiative marks a step toward long-term credibility, current market dynamics and technical patterns suggest DOGE could plunge to $0.11 soon. With macro pressure mounting and sentiment deteriorating, Dogecoin appears more vulnerable than ever — despite efforts to rewrite its narrative.
