Dogecoin (DOGE), like the other meme coins, is under heavy bearish pressure and has failed to stage a meaningful rally for a while. Due to the recent price drops, determining the next price trajectory of the crypto asset has been a major discussion within the cryptocurrency landscape.
Popular cryptocurrency analyst and enthusiast YG Crypto delves into the topic and shares: issued a cautionary prediction that has piqued the interest of the Dogecoin community, predicting that the value of the largest meme coin could fall to $0.09.
The next price development of Dogecoin will be determined by a breakout
The analysis of YG Crypto comes amid ongoing market instability and increased volatility in the cryptocurrency space, which has seen notable price swings and a bearish trend in recent weeks. His prediction delves into DOGE’s recent price performance, particularly a critical support zone that could lead to a price drop if the asset fails to clear it.
According to YG Crypto, Dogecoin is currently trading near a crucial support zone between $0.11200 and $0.11500. Should DOGE break below the support range, the expert expects a depth correction, potentially hitting the $0.095 threshold. “The overall downward channel also indicates a bearish bias,” the analyst added.
While DOGE may be poised for a potential downtrend, YG Crypto believes there is still a possibility that the digital asset could turn around and move on an upward trajectory.
The expert noted that DOGE may be able to overcome dynamic resistance and bounce back to the $0.170 and $0.176 price levels if it can maintain a breakout above $0.16 and reach the upper boundary of the channel.
This prediction from YG Crypto highlights how unstable the price of Dogecoin has been lately and how important market sentiment is in determining its value.
Is a $1 or $2 DOGE possible?
Dogecoin, currently trading around $0.12, has struggled to maintain its value during the broader market downturn. Cryptocurrency analyst Kaleo has offered insights into the negative move, noting that he wouldn’t be surprised if the price dropped to $0.08 or $0.1.
Kaleo emphasized that despite previous price increases of 6,000% and 30,000% that occurred in the early days of DOGE, since then it has been moving sideways or downwards. Considering that these explosive moves happened eight to nine months after Bitcoin’s halving, the analyst doesn’t expect a big move until December and February of next year.
Taking all this into consideration, Kaleo believes the bullish trend could reverse and send DOGE to the 8-10 cent region, reversing the upward gains from February this year. “A similar trend reversal with a 30% pullback and pullback occurred in August 2020, a few months before DOGE went mainstream and gigasending,” he added.
Although Kaleo foresees a bearish trend for Dogecoin, he still believes it could reach the $1 and $2 threshold in the coming months, caused by a memecoin super cycle.
Featured image from iStock, chart from Tradingview.com