Beloved Dogecoin, the Shiba Inu-looking cryptocurrency that started as a joke, is facing a difficult time. A recent $16 million sale by a large holder, likely a “whale” investor, sent shockwaves through the DOGE community, raising questions about the meme coin’s long-term viability.
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Mags charts a worrying path
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 drop to zero.
Bluntly, the analyst says that the meme coin is “bearish” and is about to lose value.
$DOGE is down and going to zero.
do not believe me? see for yourself 👇 pic.twitter.com/p4jYYDlbLZ
-Mags (@thescalpingpro) June 12, 2024
This prediction depends on the cyclical nature of DOGE, where brief price increases are followed by long periods of decline. While a temporary rise to $1.70 is possible in Phase 3, Mags warns investors to be wary of this fleeting optimism.
Technical indicators flash red
Despite the recent 4% price increase, technical indicators paint a worrying picture. The Relative Strength Index (RSI) is in neutral territory, neither overbought nor oversold, reflecting investors’ indecision. Most 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, causing DOGE to fall further towards the $0.07 mark.
Can Dogecoin Defy the Odds?
Although Mags’ analysis and technical indicators cast a long shadow, there is still a glimmer of hope for the meme coin. The recent increase in trading volume suggests intensified activity, potentially indicating a buying spree by loyal DOGE holders. Furthermore, surpassing the first resistance level at $0.14 could signal a possible turnaround. However, this optimistic scenario depends on defying historical trends and requires a significant shift in market sentiment.
![Dogecoin under pressure and 'going to zero', says analyst 3 A f70c65](https://thegurumedia.com/wp-content/uploads/2024/06/A_f70c65.png)
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 its usual bullish tweets, DOGE lacks a strong catalyst for sustained upward momentum.
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Dogecoin Price Forecast
Meanwhile, based on technical analysis from CoinCodex, the price of Dogecoin is predicted to decrease by 13%, reaching $0.12 on July 13, 2024. Current sentiment is bearish, suggesting a prevailing expectation of downward price movement. Despite this, the Fear and Greed Index is at 70, indicating a high level of Greed among investors.
![Dogecoin under pressure and 'going to zero', says analyst 4 A dda30c](https://thegurumedia.com/wp-content/uploads/2024/06/A_dda30c.png)
Over the past 30 days, Dogecoin has experienced 14 out of 30 green days, which equates to a 47% success rate in positive price movements. The price volatility observed in this period is 5.10%, indicating significant fluctuations in its market price.
This heightened volatility, combined with bearish sentiment, suggests that Dogecoin may encounter further price declines, although investor optimism, as indicated by the Fear and Greed Index, may usher in near-term price hikes.
CSF Hungary Featured Image, Chart from TradingView