Dogecoin Could Drop 20% to $0.073, Analysts Warn
Multiple crypto analysts have raised red flags over Dogecoin's technical setup, with chart patterns and moving average pressure suggesting further downside risk ahead.
Key Takeaway
Technical breakdown and EMA pressure suggest DOGE's trading volume won't save it from further losses.
Crypto analyst ColinTCrypto warned Dogecoin shows strong signs of breaking down further, potentially hitting new lows at $0.073 based on his chart analysis. The analyst described Dogecoin as a weak altcoin and said investors should not hold it right now.
DOGE has already dropped 46% year-to-date according to CoinMarketCap data, trading at $0.09 and holding that support level for now. However, ColinTCrypto's white triangle formation pattern suggests that floor could crack.
Market expert Osemka raised similar concerns, noting Dogecoin has been getting slammed by its Exponential Moving Average for the past three weeks. There is no more room left for altcoins to run, Osemka said, pointing to pressure that could trigger an imminent downward break.
The bearish warnings come even as Dogecoin leads memecoin trading volume, exceeding competitors like Shiba Inu and MOG. Bitcoinist crypto writer Scott Matherson noted the contrast between DOGE's trading activity and its price performance. The gap between volume and price action often signals distribution rather than accumulation, suggesting that if ColinTCrypto's forecast plays out, the drop to $0.073 would mark a fresh low for Dogecoin in its current downtrend that began after its 2021 peak.
This article was written based on reporting from Bitcoinist.
