Dogecoin Approaches Major Support After 90% Crash

Dogecoin is approaching a major historical support zone after another sharp selloff across the crypto market. 

Notably, the meme coin is trading around $0.0735. It is down about 3% over the past 24 hours, 11% over the past week, and 55% over the past year.

The latest decline followed a sharp drop in Bitcoin. The largest cryptocurrency briefly fell to $58,000 for the first time since October before recovering to around $59,400.

Despite the rebound, Bitcoin could still move lower. Continued weakness in the largest cryptocurrency has also weighed on altcoins, including Dogecoin.

$0.05-$0.06 Emerges as a Long-Term Buying Zone

Dogecoin’s price is nearing one of its strongest historical support areas. The $0.05-$0.06 range stands out as a potential long-term accumulation zone.

The weekly chart suggests DOGE could revisit support near $0.0607 before attempting a recovery. If buyers hold that level, DOGE could make a long-term move back toward resistance around $0.49. The projection also includes a possible 1,270% rally to $1.05 during the next major bull market.

Meanwhile, Bitcoin could also decline toward $54,000 before the broader crypto market begins to recover.

Buy Signal Appears as Bulls Defend Support

Despite the ongoing selloff, some technical indicators suggest selling pressure may be easing.

The TD Sequential indicator has flashed a buy signal on Dogecoin. Traders often watch this pattern for potential trend reversals after extended declines.

The $0.073 level is now acting as key short-term support. Holding above that price could allow DOGE to rebound toward $0.081. However, a break below $0.073 would invalidate the short-term bullish setup and increase the risk of further losses.

DOGE Returns to Levels Seen After the COVID Crash

The recent decline has pushed Dogecoin into one of its weakest on-chain positions in years. DOGE is now about 90% below its all-time high, recorded more than five years ago. 

On-chain data also shows that only 17% of the circulating supply remains in profit. That highlights the scale of investor losses.

The last time Dogecoin experienced similar market conditions was in April 2020, shortly after the COVID-19 market crash. At the time, the token was trading near $0.002.

Extreme pessimism has historically appeared near major market bottoms. Interest in meme coins often fades after prolonged declines, when many holders have already capitulated. 

While that does not guarantee a rebound, current sentiment resembles previous accumulation periods that preceded stronger market recoveries.