Dogecoin (DOGE) You may soon suffer a major price crash. Recent analysis shows that Bitcoin price The price is about to correct, which will also lead to a downtrend for the leading meme coin.
Dogecoin will be issued alongside Bitcoin
Dogecoin is set to fall along with Bitcoin if the latter eventually experiences a massive price correction. Cryptocurrency Analyst Ali Martinez Recently predicted that the leading cryptocurrency may witness. In X (formerly Twitter) mailMartinez noted that on the two-month chart of Bitcoin, the TD Sequential indicator provided a sell signal in anticipation of a price correction.
The crypto analyst also mentioned that Bitcoin could drop to $40,600 if the cryptocurrency fails to hold the $51,000 support level. The expected Bitcoin price drop is also expected to lead to a Dogecoin price crash due to the price correlation between both crypto assets. Data from IntoTheBlock Market Intelligence Platform It appears that the price correlation of Dogecoin with Bitcoin is 0.9, indicating a strong positive price correlation.
Related Reading: Dogecoin Forms ‘Second Low’ That Could Lead to 4,000% Rally Above $4
Bitcoin, as the leading cryptocurrency, is also known to have a huge impact on the broader cryptocurrency market. As such, a price drop will undoubtedly translate into downward pressure on DOGE. It is worth noting that Dogecoin was one of the coins that suffered the largest price drop after Bitcoin crash on August 5 When the leading cryptocurrency fell below $50,000.
Meanwhile, Bitcoin’s collapse is likely due to the leading cryptocurrency’s historical trend of mostly losing ground in September. Along with Martinez, other crypto analysts like CryptoQuant’s head of research, Julio Moreno, also weighed in. expected Bitcoin is expected to see a major price crash this month.
September was also not the best month for DOGE. Data CryptoRank data shows that the leading meme coin has suffered a monthly loss in all but three Septembers since 2014. The last time Dogecoin closed September in profit was in 2021.
Onchain Metrics Paint Mixed Picture for DOGE Price
Chain Measurements The forecast currently paints a mixed picture for Dogecoin, with some bullish and some bearish. Dogecoin’s large transactions have seen a significant increase, indicating that Crypto whales There are huge amounts of cryptocurrencies piling up right now. The imbalance between supply and demand is positive for Dogecoin.
On the other hand, the number DOGE addresses Meanwhile, the price of the cryptocurrency is falling due to the bearish price action of the meme coin, especially with Dogecoin remaining below the crucial support level at $0.10. Meanwhile, DOGE Certification It has remained stagnant, indicating a lack of interest in the meme coin among new investors.
At the time of writing, Dogecoin is trading at around $0.09, up over 1% in the last 24 hours, according to Data From CoinMarketCap.
Featured image created using Dall.E, chart from Tradingview.com