The fluctuating trend in the price of Bitcoin continues, and altcoins are not convinced by the recent BTC recovery. Cryptocurrencies are preparing for increased volatility ahead of tomorrow’s Fed meeting. So, what about DOGE? What should DOGE investors pay attention to? Here are the current outlook and price expectations.
DOGE Price Prediction
The sudden price fluctuations have led to significant formations in the charts of altcoins. In the case of DOGE, there is a possibility of a break from the descending triangle formation on the long-term chart, which could result in a nearly 50% loss in price.
The reading on the weekly chart indicates that the price has maintained the $0.059 support since June 2022. The critical support zone has been tested multiple times, with recent tests reflecting strong buyer demand through long lower wicks. However, the DOGE price is under pressure due to the descending resistance trend line that has been ongoing since November 2022. When this trend line intersects with the $0.059 support, the descending triangle formation mentioned earlier is formed in the first section. The target of this breakout is a 50% drop to the $0.03 support.
Dogecoin (DOGE) Analysis
The readings on the weekly chart indicate a downtrend, while the daily chart’s outlook remains uncertain. Since August 17th, the DOGE price has formed a double bottom formation. A double bottom is considered a bullish formation, often leading to upward movements. If the increase in BTC price continues in the short term, a test of the $0.07 region indicated by the daily chart could be seen.
For the bullish scenario on the daily chart to materialize, there should be no closings below the $0.061 region. If this occurs, it will invalidate the double bottom formation and likely indicate the activation of the bearish scenario on the weekly chart.
In summary, the current price outlook for DOGE will depend on whether the price will bounce in the $0.059 area. If the price initiates an upward movement from this zone, a 15% increase can be expected, while a 50% loss scenario may occur if the opposite scenario unfolds.
The 50% drop scenario can be triggered by a sudden drop in the price of BTC on the evening of the Fed meeting. Everyone is expecting the Fed to keep interest rates steady and announce an optimistic stance. However, if there is an increase and the Fed strengthens its hawkish stance, it may not bode well for the crypto market.
