As bearish momentum in the crypto market intensifies, Dogecoin is at risk of breaching its long-held support at $0.30.Today alone, Dogecoin (DOGE) has shed 9% of its value, plummeting from $0.3452 to as low as $0.315 at press time. This bearish move follows Bitcoins recent retest of the $90K level. Specifically, BTC hit $90,183, with ongoing threats of dropping to even lower levels.Dogecoin, being a meme-themed crypto asset, is a major victim of Bitcoin's bearish volatility. While the meme coin has dipped to $0.3100, erasing all gains since the beginning of the year, an analyst has warned of even greater downside potential.Dogecoin Could Tank by 20% to $0.27In a tweet, analyst Ali Martinez revealed that Dogecoin was breaking out of a bear flag pattern, and the likely target from this breakdown is the $0.27 price range. The last time Dogecoin traded at this price level was on December 20, 2024.Interestingly, when Martinez made his call on Sunday morning, Dogecoin was trading at $0.3350. At press time, the bearish outlook is rapidly taking shape, with Dogecoin dangerously close to losing the $0.30 price level, which it has held above since the start of the new year.Dogecoin chart by Ali MartinezRemarkably, a separate analysis of Dogecoin by The Crypto Basic further confirms the bearish outlook put forward by Martinez. The analysis highlighted that Dogecoins technical indicators are showing a bearish alignment. After breaching the 23.60% Fibonacci level at $0.31385, Dogecoin risks dropping to $0.265. For context, from Dogecoins intraday high of $0.3452, reaching these lows would represent a loss of over 20%.Meanwhile, the analysis noted the potential for a double-bottom reversal if Dogecoin holds above the Fibonacci level. Specifically, it highlighted the possibility of a rebound to $0.40.Corrections Are BullishHowever, the disclosure of the downside risk in Dogecoin has triggered unease among traders who had hoped Dogecoin was on track to reach the $1 price level. A community member lamented that just days ago, Martinez had predicted a rally to $2. While expressing frustration with the bearish prediction, the individual hurled insults at the analyst for the call.Martinez responded that corrections, in the long-term view, are bullish, as they offer another window to buy at a lower price ahead of the next rebound. He advised that those unable to stomach market volatility should avoid engaging with crypto assets.Bullish Factors for Dogecoin Promising 11X ReboundDespite the ongoing short-term correction, some market commentators believe Dogecoin could stage an 11X rally soon. They point to the historical trend where Dogecoin soared aggressively following U.S. presidential inaugurations. A similar event is unfolding in a week, and some see this as a bullish sign for Dogecoin.
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