Dogecoin Deviates From Established Bullish Trends, Is It Headed For Another Red Month?

Dogecoin has deviated from established bullish trends in the previous bull cycle, having started this year with significant price crashes. With this bearish trend, the foremost meme coin looks to be headed for another red month, which would further raise concerns about DOGE’s bull run this year. 

Dogecoin Deviates From Established Bullish Trends

CryptoRank data shows that Dogecoin is deviating from the historical bullish trend in the 2021 bull run. The foremost meme coin has started the year with a bearish trend, having suffered significant crashes since January. In January, the meme coin closed the month with a meager 4% gain. However, its price has nosedived since the start of February, with a 20% loss since this month began. 

This is nothing compared to the bullish run that Dogecoin enjoyed at the start of the year during the 2021 bull run. Back then, DOGE recorded a 711% gain in January and then followed it up with a 26% gain in February. In fact, the foremost meme coin closed the first four months of 2021 in the green, recording gains of 11% and 546% in March and April, respectively. 

However, this 2025 bull run is playing out differently, especially with Dogecoin suffering a 20% crash this month and looks likely to end this month in the red. A monthly close in the red could invalidate similarities between the 2021 and 2025 bull run and raise concerns about how this market cycle could play out. 

However, the historical trend in the 2017 bull run provides some optimism amid Dogecoin’s current price action in this bull run. In 2017, the foremost started the year in the red, with a monthly loss of 7% and 2% in January and February, respectively. DOGE then went on a bull run the following three months, recording a gain of 59%, 124%, and 256% in March, April, and May, respectively. 

DOGE Still At Risk Of Further Crashes In The Short Term

Crypto analyst Ali Martinez suggested that Dogecoin is still at risk of further price crashes in the short term. In an X post, the analyst revealed that DOGE just saw a death cross between the market value to realized value (MVRV) and its 200-day moving average (MA). He further remarked that prices dropped 26% and 44% the last two times this happened. 

Meanwhile, Martinez also noted that Dogecoin is in a downtrend, forming lower lows and lower highs. He added that a breakout above key resistance levels is needed to shift momentum. His accompanying chart showed that DOGE needs to break above the resistance at $0.27 to enjoy a potential bullish reversal. 

At the time of writing, the Dogecoin price is trading at around $0.26, down over 3% in the last 24 hours, according to data from CoinMarketCap.