The beloved Dogecoin, the Shiba Inu-faced cryptocurrency that started as a joke, is facing a ruff time. A recent $16 million sell-off by a large holder, likely a “whale” investor, has sent shockwaves through the DOGE community, raising questions about the meme coin’s long-term viability.
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Mags Charts A Worrying Course
Crypto analyst Mags has emerged as the harbinger of doom for DOGE. Using a self-developed charting method, Mags identifies distinct phases in Dogecoin’s historical price movements. Phase 3, according to Mags, paints a particularly bleak picture, suggesting a potential plummet to zero.
Bluntly, the analyst says the meme coin is “bearish” and is about to become worthless.
$DOGE is bearish and is going to zero.
don’t belive me? see for yourself 👇 pic.twitter.com/p4jYYDlbLZ
— Mags (@thescalpingpro) June 12, 2024
This prediction hinges on the cyclical nature of DOGE, where brief price surges are followed by extended periods of decline. While a temporary spike to $1.70 is possible in Phase 3, Mags warns investors to be wary of such fleeting optimism.
Technical Indicators Flash Red
Despite a recent 4% price increase, technical indicators paint a concerning picture. The Relative Strength Index (RSI) sits squarely in neutral territory, neither overbought nor oversold, reflecting investor indecision. More importantly, DOGE is currently trading below its key moving averages, with the 200-day EMA acting as the last line of defense at $0.123. A breach of this support level could trigger a domino effect, sending DOGE tumbling further towards the $0.07 mark.
Can Dogecoin Defy The Odds?
While Mags’ analysis and technical indicators cast a long shadow, there’s still a glimmer of hope for the meme coin. The recent uptick in trading volume suggests heightened activity, potentially indicating a buying spree by loyal DOGE holders. Additionally, overcoming the first resistance level of $0.14 could signal a potential turnaround. However, this optimistic scenario hinges on defying historical trends and requires a significant shift in market sentiment.
The future of Dogecoin remains shrouded in uncertainty. Elon Musk, the self-proclaimed “Dogefather” and a major influencer of the meme coin’s price, has been relatively quiet recently. Without his usual bullish tweets, DOGE lacks a strong catalyst for a sustained push upwards.
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Dogecoin Price Forecast
Meanwhile, based on technical analysis by CoinCodex, the price of Dogecoin is predicted to decrease by 13%, reaching $0.12by July 13, 2024. The current sentiment is Bearish, suggesting a prevailing expectation of downward price movement. Despite this, the Fear & Greed Index stands at 70, indicating a high level of Greed among investors.
Over the past 30 days, Dogecoin has experienced 14 out of 30 green days, equating to a 47% success rate in positive price movements. The observed price volatility during this period is 5.10%, indicating significant fluctuations in its market price.
This heightened volatility, combined with the bearish sentiment, suggests that Dogecoin may encounter further price declines, although investor optimism as indicated by the Fear & Greed Index could introduce short-term price rallies.
Featured image from CSF Hungary, chart from TradingView