Beloved Dogecoin, the cryptocurrency with a Shiba Inu face that started as a joke, is having a tough time. The recent $16 million sale by a large holder, likely a “whale” investor, sent shockwaves through the DOGE community, raising questions about the memecoin’s long-term viability.
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Mags charts an alarming cycle
Cryptocurrency analyst Mags has emerged as a harbinger of doom Doug. Using a self-developed charting method, Mags identifies distinct phases in Dogecoin's historical price movements. The third phase, according to Maggs, paints a particularly bleak picture, suggesting it could potentially drop to zero.
Frankly, the analyst says the meme is “bearish” and on the verge of becoming worthless.
$dawg It is bearish and will reach zero.
Do not believe me? See for yourself 👇 pic.twitter.com/p4jYYDlbLZ
– Cups (@thescalpingpro) June 12, 2024
This prediction is based on the cyclical nature of DOGE, where short price increases are followed by long periods of decline. While a temporary rise to $1.70 is possible in the third phase, Mags warns investors to be wary of such fleeting optimism.
Technical indicators flash red
Despite the recent 4% increase in prices, technical indicators paint a worrying picture. The Relative Strength Index (RSI) is squarely in the neutral zone, neither overbought nor oversold, reflecting investor hesitation. More importantly, DOGE is currently trading below its major moving averages, with the 200-day EMA acting as a last line of defense at $0.123. A breach of this support level could trigger a domino effect, sending DOGE falling further towards the $0.07 mark.
Can Dogecoin defy the odds?
While Mags' analysis and technical indicators cast a long shadow, there is still a glimmer of hope for the meme coin. The recent spike in trading volume indicates increased activity, which could indicate a buying spree by loyal DOGE holders. Additionally, beating the first resistance level of $0.14 could indicate a potential turnaround. However, this optimistic scenario hinges on challenging historical trends and requires a significant shift in market sentiment.
The future of Dogecoin is still shrouded in uncertainty. Elon Musk, the self-proclaimed “godfather” and one of the main influencers on the price of the memecoin, has been relatively quiet lately. Without its usual bullish tweets, DOGE lacks a strong catalyst for a sustained push higher.
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Dogecoin price forecast
Meanwhile, based on the technical analysis conducted by CoinCodex, the price of Dogecoin is It is expected to decrease by 13%, reaching $0.12 by July 13, 2024. The current sentiment is bearish, indicating the prevailing expectation of downward price movement. Despite this, the Fear and Greed Index stands at 70, indicating a high level of greed among investors.
Over the past 30 days, Dogecoin has seen 14 out of 30 green days, which equates to a 47% success rate in positive price movements. The observed price volatility during this period was 5.10%, which indicates significant fluctuations in its market price.
This increased volatility, combined with a downward trend, suggests that Dogecoin may face further price declines, although investor optimism as the Fear and Greed Index indicates may lead to price rises in the short term.
Featured image of CSF Hungary, chart from TradingView
