Bitcoin has fallen below $27,000 in an extremely unpleasant way. The risk for altcoins is increasing. The sales experienced by the king cryptocurrency draws an interesting picture despite the positive macroeconomic data. What about Dogecoin? Its price is also falling. Let’s examine the levels and current outlook that Dogecoin investors should pay attention to.
Dogecoin (DOGE)
Dogecoin (DOGE) price is at risk of breaking down a support line that has been in place for nearly a year. If this happens, we could see one of the historic declines. RSI data on different timeframe charts shows that the probability of a decline is increasing. Technical analysis on the long-term weekly timeframe does not paint a clear picture of Dogecoin’s future.
There is still hope for DOGE traders who are expecting a rise. What fueled their optimism was the breach of a descending resistance line that has been in place since the all-time high. During the previous breakout week, the DOGE price surged 170% to a peak of $0.159. However, in the 190 days since then, the price has moved downwards.
Dogecoin Price Prediction
The current state of the Bitcoin price is characterized by continued declines in almost all altcoins. It suggests that the support level that the DOGE price has been holding since June 2022 could be broken to the downside. This support level has been tested 3 times before. This is the fourth and usually support levels tested this many times are broken to the downside. The weekly RSI supports the down move.
The outlook on the daily chart also supports the bearish expectation. The first reason comes from wave counting. Technical analysts use the Elliott Wave theory to identify recurring long-term price patterns and investor psychology. According to this theory, the Dogecoin (DOGE) price formed an A-B-C structure between March and April 10. Since the correction has an upward slope, this means that the dominant trend is bearish.
The second strong reason for the decline is the Relative Strength Index below 50. As mentioned earlier, this is a sign of a bearish trend. Moreover, the DOGE price made a failed bounce attempt in the last 24 hours. Moreover, the Bitcoin price continues to fall.
If the bearish scenario materializes, Dogecoin price could go down to $0.057. If the price bounces off the support zone, it is expected to reach $0.095 in this scenario as well.
