Crypto Market Crushed by AI Fears, Will Dogecoin Plunge 30% to $0.065?

▲ Dogecoin (DOGE) / AI-generated image ©

As macroeconomic fears triggered by the rapid advancement of artificial intelligence (AI) technology sweep across the cryptocurrency market, a dire warning has emerged that leading meme coin Dogecoin (DOGE) could plunge an additional 30%.

According to investment media outlet FXEmpire on February 24 (local time), Dogecoin is forming a classic bearish flag pattern on the daily chart amid heightened risk-off sentiment fueled by fears of an AI-driven industry collapse. The price is currently moving uneasily within a narrowly rising channel, which analysts interpret not as a trend reversal but as a temporary rebound driven by short covering and dip buying.

On the chart, the lower support line of the bearish flag lies in the $0.088 to $0.090 range, while the upper resistance line is positioned between $0.102 and $0.106. If the lower trendline breaks on a daily closing basis, Dogecoin faces a significant risk of plunging approximately 30% from its current price to the key support level at $0.065. To invalidate this bearish scenario, the price must break above the upper boundary of the flag and firmly reclaim the 50-day exponential moving average at $0.112.

Glassnode’s Market Value to Realized Value (MVRV) Extreme Deviation Bands indicator also supports this pessimistic outlook. According to the model, which measures market overheating and downturns, the negative 1.0 standard deviation band is located near $0.068, aligning precisely with the $0.065 to $0.070 crash zone indicated by the bearish flag pattern. Historically, Dogecoin has tended to halt or stabilize its decline near these extreme deviation levels.

Dogecoin’s fragile technical structure is being further exacerbated by AI-related fears raised in a recent report by Citrini Research. The report warned that if artificial intelligence delivers a shock beyond expectations, unemployment could surge to 10%, potentially dragging the S&P 500—projected to reach 8,000 by late 2026—down by about 38% and extending a recession into 2027. With payment services, software, and private credit markets expected to take direct hits, Dogecoin, as a high-risk meme asset, is likely to be among the first sold off in a broad macro-driven market rout, leaving it particularly vulnerable.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from it. The content should be interpreted solely for informational purposes.