Dogecoin Reserve has become a hot topic in the crypto world right now as the Dogecoin Foundation makes its bold move by purchasing about 10 million DOGE coins. This announcement, however, comes at a rather tricky time. Well, technical indicators are actually pointing to a possible 30% crash in the popular meme cryptocurrency’s price. Many investors are, therefore, asking the very same burning question: Will Dogecoin go up despite these bearish patterns that seem to be forming at the time of writing?
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Dogecoin Reserve’s Impact on Price: Surge or 30% Crash Ahead?
Bear Flag Pattern Signals Trouble
The Dogecoin price prediction looks quite concerning as a bear flag pattern has formed on the daily chart. This pattern emerged after DOGE dropped from around $0.214 in late 2024, and the price action has been trapped between a descending trendline and a support level hovering around $0.137.
On March 24, DOGE tested the upper trendline but closed with a red candle, which indicates rejection. A breakdown below the lower trendline could trigger a 30% drop to around $0.11 or possibly even lower.
The RSI currently sits at 47.45 (down from 58.71 previously), and there’s also a death cross between the 50-day and 200-day EMAs that further reinforces this rather bearish outlook for Dogecoin Reserve.
Dogecoin Foundation’s Reserve Initiative
The Dogecoin Reserve was officially launched on March 24, 2025. Despite this effort, DOGE’s upside momentum seemed to have diminished on March 25, which suggests that many traders don’t view the news as sufficiently bullish enough to overcome the various market concerns. The Reserve represents an attempt to position Dogecoin as a more credible asset for broader adoption in payments and such applications.
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Tesla Connection Weighs on DOGE
Elon Musk‘s association with Dogecoin continues to influence its performance in the market. right now. Being Musk’s “favorite” cryptocurrency, DOGE has historically followed Tesla‘s market movements, and this correlation seems to be continuing at present.
Across multiple essential corporate relationships, Tesla’s financial trajectory has leveraged significant influence on DOGE valuations. Tesla’s stock has plummeted over 50% since late 2024. This happened due to falling sales, production challenges, and concerns about Musk’s focus on his role in the Trump administration. The March 11 crash wiped out approximately $16 billion in Tesla value, which has further eroded confidence in DOGE and affected the Dogecoin price prediction models.
Macroeconomic Pressures Mount
The bearish Dogecoin price prediction is also compounded by broader economic uncertainties at present. President Trump’s aggressive tariff policies have triggered some market turbulence, reducing appetite for speculative assets like DOGE.
Several key macroeconomic factors have instituted a challenging environment for digital assets. Through various major policy implementations, market conditions have been restructured in ways that impact cryptocurrency valuations.
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In this high-risk environment, cryptocurrencies often face selling pressure as investors seek safer alternatives. This partly explains why the crypto market trends remain somewhat negative despite the Foundation’s Dogecoin Reserve announcement, which would normally be considered positive news.