🚀Dogecoin Dips—Is a Massive Breakout to $0.83 Coming Soon?

Dogecoin ($DOGE ) has fallen 11.75% in the past 24 hours, hitting $0.352 on January 8. While this drop may raise concerns, the bigger picture could signal a massive rally ahead.

Why Did Dogecoin Drop?

1. Economic Pressure Impacts Crypto Markets

Stronger-than-expected U.S. economic data reduced hopes for interest rate cuts, leading to a sell-off in riskier assets like crypto. Investors are rebalancing portfolios as the Federal Reserve signals a cautious approach to rates.

2. Liquidations Trigger Panic Selling

The crypto market saw $710 million in liquidations, with Dogecoin accounting for $26.95 million. Most of these were bullish long positions, pushing prices lower temporarily.

What’s Next for Dogecoin?

Despite recent drops, Dogecoin is forming a bull flag pattern—a bullish technical setup. If DOGE holds key support levels, this pattern could fuel a breakout toward $0.830 by March 2025, representing a 140% rally.

However, a short-term test of $0.266 remains possible if bearish momentum continues. Traders are closely watching this zone as it aligns with the 50-period EMA on the 3-day chart.

Keep an eye on key resistance and support levels, and stay prepared for the next big move.