The king of cryptocurrency continues to fluctuate, and after testing the latest resistances, the price has eased towards support. While BTC price has largely remained stable, DOGE, which has stayed mostly stagnant, suffered significant losses from the recent drop. As most altcoins share this fate, Bitcoin market dominance has once again risen above 50%.
Dogecoin (DOGE) Analysis
Yesterday, DOGE price lost its 120-day horizontal support. In the DOGE price predictions articles we have shared over the past 14 days, we have constantly emphasized this risk. The drop was fueled by miner sales, with the final push coming from BTC losses. As a result, DOGE fell below $0.06 due to the losses in Bitcoin price.
On the daily chart, the $0.06 support has been noticeably significant since June 10. In addition to losing this level, the price formed a descending triangle, which is considered a bearish pattern, trading below a declining resistance trend line since July 25.
DOGE price, which dropped to $0.057, the lowest price since August 17, is still close to the $0.055 support level.
DOGE Price Prediction
The daily RSI supports a downward trend, and the readings on the weekly chart are not promising either. DOGE price is trading within a larger descending triangle formation with a base at $0.057. As mentioned earlier, this is a bearish formation, and if the base is lost, further losses are likely to accelerate.
If the base line is lost, a 67% loss can occur, which means the price could drop to $0.02, as indicated by the descending triangle.
Some experts are concerned about BTC losing $26,800 in the near future and dropping to $25,000 and $23,000. In this scenario, DOGE price could also drop to $0.02 due to the impact of overselling (as indicated by the descending triangle).
Of course, technical analysis does not predict the future and does not have to follow price formations. However, past experiences indicate that this is the most likely scenario. The weekly chart also supports the downward trend in RSI.
Despite the bearish prediction, if DOGE price bounces from $0.057, it could recover up to the long-term declining resistance trend line at $0.07.
