Dogecoin Under Pressure And ‘Going To Zero’, Analyst Says – Here’s Why
June 13 2024 - 8:30AM
NEWSBTC
The beloved Dogecoin, the Shiba Inu-faced cryptocurrency that
started as a joke, is facing a ruff time. A recent $16 million
sell-off by a large holder, likely a “whale” investor, has sent
shockwaves through the DOGE community, raising questions about the
meme coin’s long-term viability. Related Reading: Bitcoin Ownership
Trends: Short-Term Spike As ETFs Gain Popularity – Report Mags
Charts A Worrying Course Crypto analyst Mags has emerged as the
harbinger of doom for DOGE. Using a self-developed charting method,
Mags identifies distinct phases in Dogecoin’s historical price
movements. Phase 3, according to Mags, paints a particularly bleak
picture, suggesting a potential plummet to zero. Bluntly, the
analyst says the meme coin is “bearish” and is about to become
worthless. $DOGE is bearish and is going to zero. don’t belive me?
see for yourself 👇 pic.twitter.com/p4jYYDlbLZ — Mags
(@thescalpingpro) June 12, 2024 This prediction hinges on the
cyclical nature of DOGE, where brief price surges are followed by
extended periods of decline. While a temporary spike to $1.70 is
possible in Phase 3, Mags warns investors to be wary of such
fleeting optimism. Technical Indicators Flash Red Despite a recent
4% price increase, technical indicators paint a concerning picture.
The Relative Strength Index (RSI) sits squarely in neutral
territory, neither overbought nor oversold, reflecting investor
indecision. More importantly, DOGE is currently trading below its
key moving averages, with the 200-day EMA acting as the last line
of defense at $0.123. A breach of this support level could trigger
a domino effect, sending DOGE tumbling further towards the $0.07
mark. Can Dogecoin Defy The Odds? While Mags’ analysis and
technical indicators cast a long shadow, there’s still a glimmer of
hope for the meme coin. The recent uptick in trading volume
suggests heightened activity, potentially indicating a buying spree
by loyal DOGE holders. Additionally, overcoming the first
resistance level of $0.14 could signal a potential turnaround.
However, this optimistic scenario hinges on defying historical
trends and requires a significant shift in market sentiment. The
future of Dogecoin remains shrouded in uncertainty. Elon Musk, the
self-proclaimed “Dogefather” and a major influencer of the meme
coin’s price, has been relatively quiet recently. Without his usual
bullish tweets, DOGE lacks a strong catalyst for a sustained push
upwards. Related Reading: Ethereum Longs Crushed! Who Got Burned In
The $62 Million Fire Sale? Dogecoin Price Forecast Meanwhile, based
on technical analysis by CoinCodex, the price of Dogecoin is
predicted to decrease by 13%, reaching $0.12by July 13, 2024. The
current sentiment is Bearish, suggesting a prevailing expectation
of downward price movement. Despite this, the Fear & Greed
Index stands at 70, indicating a high level of Greed among
investors. Over the past 30 days, Dogecoin has experienced 14 out
of 30 green days, equating to a 47% success rate in positive price
movements. The observed price volatility during this period is
5.10%, indicating significant fluctuations in its market price.
This heightened volatility, combined with the bearish sentiment,
suggests that Dogecoin may encounter further price declines,
although investor optimism as indicated by the Fear & Greed
Index could introduce short-term price rallies. Featured image from
CSF Hungary, chart from TradingView
Dogecoin (COIN:DOGEUSD)
Historical Stock Chart
From Sep 2024 to Oct 2024
Dogecoin (COIN:DOGEUSD)
Historical Stock Chart
From Oct 2023 to Oct 2024