Market outlook: DOGE set to touch $0.21 before rebound, analyst warns

Dogecoin (DOGE) has dipped by 13% in the last seven days as the general crypto market faces a correction, but the dip isn’t over yet.

A popular crypto analyst, Crypto Tony in a tweet on 26 September said the number one memecoin is likely dropping to lower levels, reaching $0.21 before a rebound.

The asset is currently trading at $0.23 at the time of writing this report, which means a significant dip awaits if this prediction will come true.

Cooling ETF frenzy

DOGE became one of the best performing crypto assets in September as the news of a DOGE ETF approval filled the air in the crypto space.

The asset rose to a price of $0.29 just days before the ETF approval as investors were excited about the development and the expected outcome. 

However as the market started correcting, the dog-inspired fun coin has also experienced a moderate drop to the current price of $0.23.

If it dips further to $0.21, it will be driven by the cooling ETF hype and — according to some analysts — the overbought Relative Strength Index (RSI) resulting from the hype.

DOGE investors seem unbothered by the dip though, with many saying the correction is an expected one and they remain hopeful that the asset will bounce again.

According to Crypto Tony’s prediction, a bounce from the $0.21 level could bring DOGE to $0.26 and place it on the path to significant recovery.

Will the Q4 pattern repeat?

The fourth quarter of every year is considered to be a time when crypto assets flourish. DOGE isn’t left out of this pattern, because it reached its yearly high of $0.46 in December 2024.

Investors and experts are hopeful that such a pattern will be repeated and DOGE could end the year much better than it started if all things remain equal.