The biggest meme coin in terms of market value seems to be abandoned by the mischievous billionaire these days. The popular cryptocurrency had come close to its massive target of $1 for the first time with Musk’s support in the 2021 bull run. After all these months, the price is now at risk of losing a zero. This risk exists for most altcoins, and if BTC drops to $20,000, the feared scenarios can become a reality.
According to 21milyon.com data, the current price of Dogecoin in Turkish Lira is stated. According to this platform, which monitors the TL pairs on Turkish cryptocurrency exchanges in real-time, DOGE is being bought at 1.72 TL. With the negative trend in BTC price and a slight appreciation of the Turkish Lira against the dollar, DOGE experienced a significant decrease in terms of the Turkish Lira.
So, what will be the performance of Dogecoin (DOGE) against the dollar? The bad news is that the king of meme coins is trading within a long-term bearish formation. Breaking this formation can trigger a 50% price drop. Readings from both weekly and daily timeframes support the downward trend and the possibility of a breakout.
Technical analysis on the weekly timeframe shows that the price of DOGE has been trading slightly above the horizontal support area of $0.059 since June 2022. The support area has been confirmed many times so far and has gained validity. The last two confirmations formed long lower wicks, which are considered signs of buying pressure. Despite the apparent bullish price movement, DOGE has also fallen below a descending resistance line since November 2022. When this is combined with the $0.059 horizontal support area, it creates a descending triangle, which is considered a bearish formation.
The small peaks you see on the chart indicate a slowdown in momentum. The weekly RSI seems to be soon triggering this major breakdown. If this happens, the price could experience a historic drop to $0.03. Readings on the weekly chart also confirm the expectation of a decline.
The target in the event of a possible decline is the same as in the weekly chart. As a result, closing below $0.059 suggests that the price could drop to $0.030. If the long-term resistance line is broken, we could see a rally to $0.12 with a 90% increase. Shiba Coin and several other cryptocurrencies have formed similar setups to these technical readings. So, volatility may be closer than we expect.