The king of memecoins, Dogecoin (DOGE), has once again dropped below $0.07. The cryptocurrency, which has already been affected by the general market downturn, has seen a 21% decline since its peak on July 25. Negative sentiment surrounding Bitcoin prices was already causing concern among investors, and this recent drop, attributed to selling pressure at resistance levels, could deepen further. So, how low will DOGE go?
At the time of writing, DOGE was trading at $0.0669. The price, which had surged to $0.077 after the DOGE-1 space mission announcement on July 14, was unable to sustain its gains amidst the overall market downturn. Worried about further losses in the coming days, investors fueled the selling pressure. Additionally, with the weekend approaching and volumes expected to decrease even further, investors’ concerns seem justified.
In the medium term, breaking below the $0.067 support level sets the stage for a deeper dip. If the price continues to close below this level, a further drop to the $0.06 support is likely. Of course, during this process, Bitcoin price movements will be crucial.
If Bitcoin falls below $25,000, the $0.06 support could be breached, and the final support level of $0.05 may be tested. After that, the $0.048 and $0.041 levels will be of critical importance. If selling pressure persists, DOGE could revisit the $0.025 level seen in early 2021 after approximately three years.
We have already shared the medium and long-term downside targets for DOGE, given the sell signals on the daily chart. Dogecoin has previously managed to outperform the market multiple times and could do so again. For this to happen, two things are needed. Firstly, Elon Musk could announce an integration between DOGE and X in a surprising manner. We have seen the like button change to anime characters recently, so perhaps DOGE could replace this anime character in a few days or weeks. Additionally, Musk’s posts related to the DOGE-1 space mission, however weak, could trigger upward movements.
We are now certain that Twitter (X) will not support cryptocurrencies for payments in the medium term. Therefore, apart from the two alternatives mentioned above and with Musk’s support, there does not seem to be a scenario for an upward trend.