Dogecoin’s been on a downward spiral lately, dropping below $0.16 for the first time since April. This continues a month-long slump from its high of $0.23.
A Falling Meme Coin
The price drop has been pretty steep, breaking through support levels at $0.21 and $0.18. In the last 30 days, DOGE is down about 36%, significantly underperforming other cryptocurrencies. This isn’t just a Dogecoin problem; the whole crypto market is a bit shaky right now, with Bitcoin trading sideways and impacting altcoins like Dogecoin. The hype around meme coins seems to be fading too, with Shiba Inu and PEPE also experiencing significant drops.
Technical Analysis: A Bearish Outlook
Technical analyst Ali Martinez highlighted the importance of the $0.16-$0.22 price range for Dogecoin. Breaking below $0.16 signals a potential 60% price drop. The symmetrical triangle pattern on the chart, once seen as neutral, now points to a bearish trend. This could push the price as low as $0.088 – a level not seen since August 2021. Fibonacci levels also suggest support around $0.13. Unless Dogecoin bounces back above $0.16 soon, a much bigger correction is likely.
A Glimmer of Hope?
Despite the bearish outlook, there’s still hope for a Dogecoin ETF. Bloomberg Intelligence estimates a 90% chance of SEC approval, making it one of the more likely cryptocurrencies to get the green light. However, this hasn’t been enough to counter the current negative price action.
As of now, DOGE is trading around $0.1565. The future remains uncertain, but the current trend is definitely pointing downwards.
