Altcoin
Will Dogecoin Price Crash 44% Amid DOGE Death Cross Pattern?
Dogecoin price is down 3% in the last 24 hours as the entire meme coin has come under pressure following the rug pull incident in LIBRA meme coin, launched by Argentinian President Javier Milei last weekend. Technical charts for DOGE flash warning signals amid the formation of a death cross pattern for DOGE MVRV. Confirming the bearish trend, a renowned analyst predicted a likely 44% crash in the top-meme coin’s value ahead.
Dogecoin Price Can Correct 44%, Says Analyst
Popular crypto analyst Ali Martinez noted that DOGE could be heading for a challenging period amid a bearish technical chart pattern. Martinez highlighted a “death cross” between Dogecoin’s Market Value to Realized Value (MVRV) ratio and its 200-day moving average (MA).
The analyst stated that historically, such chart patterns have led to significant declines, with Dogecoin price dropping 26% and 44% during the last two instances of this pattern. If this happens, DOGE could collapse all the way to $0.15 from the current levels.
Meme Coins Take A Massive Hit
Over the past weekend, the Dogecoin price has corrected 7% as the broader meme coin sector takes a major hit following the launch of Argentina’s LIBRA meme coin, which faced a massive pump and dump. Apart from top players like Dogecoin and Shiba Inu (SHIB), celebrity meme coins have taken the most hit.
Furthermore, as per the Coinglass data, the DOGE futures open interest has tanked 5.27% to $2.41 billion while the 24-hour liquidations have shot up to $3.57 million of which, $3.1 million is in long liquidations.
DOGE Traders Remain Optimistic
Despite the technical charts suggesting bearishness for Dogecoin price, traders continue to be optimistic about gains moving ahead. Furthermore, with developments around the SEC’s potential approval of a spot Dogecoin ETF, the optimism remains intact. Last week, the U.S. Securities and Exchange Commission (SEC) acknowledged the DOGE ETF filing by asset manager Grayscale raising further hopes within the crypto community.
Crypto analyst Bluntz has expressed optimism about Dogecoin (DOGE), highlighting its stability after two weeks of consolidation following a recent capitulation event. “$DOGE is looking pretty solid here, in my opinion,” Bluntz noted, adding, “If there’s one saying that’s always stuck with me, it’s never short a dull market.”
The analyst’s remarks suggest that Dogecoin’s current quiet phase could indicate potential strength, with traders keeping a close watch for future price movements.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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