As the crypto market gradually loses the bullish steam, the Dogecoin (DOGE) price has approached the apex of a triangular consolidation formed in the past few days. In the past 24 hours, Dogecoin price dropped around 3 percent to trade at about $0.167 on Friday, March 21, during the early New York session. 

DOGE Stuck in a Downtrend

Dogecoin, the leading dog-themed memecoin, has a fully diluted valuation of around $24.8 billion and a 24-hour trading volume of about $834 million. However, since U.S. President Donald Trump’s second inauguration, DOGE has been caught in a downward trend.

Adding to this, demand for memecoins has fallen in recent months, largely due to several major Web3 hacks and scams that have shaken investor confidence.

Technical Outlook: Will DOGE Hold Its Ground?

From a technical standpoint, Dogecoin is testing an important support level within a long-term rising channel that has been forming over the past two years. On the four-hour chart, DOGE is showing an ascending triangle pattern, indicating a battle between buyers and sellers.

Crypto analyst Ali Martinez warns that DOGE could drop another 16%, potentially falling to the $0.14 support level. This bearish prediction is backed by Dogecoin’s strong correlation with Bitcoin, which has also been signaling short-term weakness.

DOGE Fundamentals Stay Strong

Despite its price struggles, Dogecoin remains a key player in the crypto market. It has over 6.1 million on-chain holders and is accepted by many global businesses as a form of payment.

Dogecoin’s proof-of-work (PoW) system has also attracted more institutional investors, thanks in part to the continued support of billionaire Elon Musk. In a show of his enthusiasm for DOGE, Musk even named a U.S. government efficiency department after the cryptocurrency, reinforcing its influence beyond the crypto space.