Dogecoin (DOGE) 15.5M Sell-Off Sparks Concerns As Analysts Predict Potential Zero Plunge

13 June 2024

in DOGE

Reading Time: 3 mins read

Dogecoin (DOGE) has recently captured the spotlight following a significant $15.5 million sell-off, sparking widespread uncertainty about the future of the meme coin. The cryptocurrency community is presently rife with speculation and concern regarding the fate of DOGE. Amid this turbulence, crypto analyst Mags has issued a stark forecast for Dogecoin’s trajectory, raising eyebrows.

Mags’s analysis paints a bearish picture for DOGE, hinting at a potential fall to zero. In the chart below, he outlined key patterns in Dogecoin’s price movements over the years, breaking them into distinct phases marked with different colors. These phases, numbered from 0 to 3, represent various stages of price action, with Mags stressing the likelihood of a steep decline.

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The chart begins with phase 0, characterized by an initial rise followed by a consolidation period. Phase 1 displays a slight upward trend, but it is phase 2 that raises investors’ alarm, with prices stabilizing before a predicted sharp drop. Mags suggests this pattern mirrors previous cycles where Dogecoin faced significant volatility, leading to substantial price decreases.

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In phase 3, Mags anticipates a dramatic rise that could potentially push the price to $1.70. Despite this, the analyst remains skeptical about the longevity of such a surge. This skepticism is based on historical trends where Dogecoin experienced brief spikes followed by extended downturns, prompting Mags to advise caution against overly optimistic forecasts.

Dogecoin Faces Technical Challenges Amidst the Growth

Currently, DOGE is trading at $0.1455, marking a 5% increase over the last 24 hours. The trading volume has jumped by 18.58% during the same timeframe, reflecting heightened activity among traders. However, technical indicators point to a bearish sentiment. The 14-day Relative Strength Index (RSI) for DOGE stands at 45.96 on the one-day chart, indicating the cryptocurrency is neither overbought nor oversold.

Despite the recent price rise, Dogecoin is trading below its 50 and 100 Exponential Moving Averages (EMA), with the 200 EMA providing immediate support at $0.1236. If DOGE breaks this support level, it could potentially fall further to $0.079. Maintaining its position above this immediate support is crucial for Dogecoin to aim for high levels.

The first significant resistance level for DOGE is at $0.149, followed by targets at $0.153 and $0.155. Successfully reaching these levels could suggest potential price increases and further resistance points.

While uncertainties loom over the future, Dogecoin confronts significant challenges ahead. Mags’s analysis and current market conditions paint a concerning picture for the meme coin. Only time will tell if DOGE can defy the odds and navigate through these turbulent waters.

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