Fun

Dogecoin Price Slump Looms, Analyst Points To Only One Lifeline

News Feed - 2024-12-13 10:12:49

Este artículo también está disponible en español.


Dogecoin (DOGE) has entered a period of weakness, slipping roughly 16% from its November 23 local high of $0.4795. As the original meme cryptocurrency struggles to reclaim key technical levels, the consensus among some analysts is that DOGE’s ability to stabilize or recover may hinge almost entirely on an external factor: Bitcoin’s trajectory. Dogecoin Price At Risk Of Another Slump


Technical analysis suggests that the previously well-respected uptrend line, established in mid-November, has now turned into a formidable barrier. After breaching this support line earlier in the week, Dogecoin bulls attempted several times to push the price back above it. Yet none of these efforts have succeeded.


Crypto analyst Kevin (@Kev_Capital_TA), who has been closely tracking the DOGE/USD 1-day chart, notes that DOGE is “getting rejected from the re test of this trend line that we were holding for almost a month on top of that it sits right in the macro .786 Fib.”—a technical zone often associated with significant turning points and potential reversals. Dogecoin price analysis, 1-day chart | Source: X @Kev_Capital_TA


Beyond the trend line, internal momentum indicators paint a challenging picture. Kevin emphasizes that the daily MACD for DOGE is showing “strong momentum to the downside,” a technical signal suggesting the market’s short- to mid-term bias may lean lower unless the broader crypto environment shifts. Related Reading Dogecoin Whales Bought 210 million DOGE During Recent Correction – Bullish Signal? 1 day ago


In his view, “It’s safe to say without a BTC move higher the more probable move for DOGE in the short to mid term is lower. A BTC move higher could save us though.” He identifies $0.32—the origin of the prior uptrend line—as a primary downside target. Should DOGE fail to hold above that level, traders may look toward the $0.29 to $0.26 range as potential next stops.


In another post on X, Kevin emphasized that Dogecoin price pinned between two critical long-term Fibonacci levels. He describes DOGE as currently “trading between the macro golden pocket,” roughly at $0.47, and the macro 0.5 Fib level near $0.39. According to him, a firm break above or below these pivotal levels could trigger what he calls a “cascading” effect of “aggressive movement.” Dogecoin technical analysis, 1-day chart | Source: X @Kev_Capital_TA


He adds: “My position is that DOGE is not in control of itself and it’s fate lies purely in BTC’s hands at the moment so overly focusing on the asset is sort of a waste of time. I see nothing telling me the cycle is over therefore this should head higher soon enough regardless of short term noise. Nothing else to do but sit back and wait if you’re a long term holder who got in early like myself.”


However, there is at least one silver lining worth noting. Kevin mentions he is “tracking [a] potential hidden bullish divergence” on the DOGE daily chart. Hidden bullish divergences occur when price action continues to trend higher over a longer timeframe, while momentum indicators—like the Relative Strength Index (RSI)—trend lower. Related Reading Dogecoin, XRP Flashing ‘Overlooked’ Bullish Signal, Santiment Reveals 1 day ago


This pattern can sometimes signal that a market’s underlying strength is greater than it appears. It is, as the analyst puts it, “pretty textbook” at the moment, though it still needs the all-important help from Bitcoin. “Still need BTC to cooperate so nothing guaranteed,” Kevin remarks. What About Bitcoin?


Kevin points out that Bitcoin is currently “squeezing” between an upward trend line of support and a macro golden pocket—levels derived from the previous bull market high to bear market low. This tightening price action suggests an imminent resolution: BTC is unlikely to remain compressed in this zone much longer. A decisive breakout, in either direction, seems imminent and could have far-reaching consequences. “This upwards consolidation cannot last much longer. We will get a bust in either direction very soon,” Kevin predicts. Bitcoin price analysis | Source: X @Kev_Capital_TA


On the liquidity front, Kevin sees significant upside liquidity blocks for BTC, noting that “built up liquidity” over the last 48 hours aligns with the macro 1.703 Fibonacci level. He also mentions observing data that shows whales purchasing large options calls for MicroStrategy (MSTR) stock. Such purchases may reflect anticipation of a BTC move higher, given MicroStrategy’s well-known Bitcoin treasury holdings. If these whales and liquidity indicators are correct, and BTC does indeed push upward, DOGE might find the “one lifeline” it needs to stabilize and reverse its current downtrend. Bitcoin liquidation heatmap (Binance) | Source: X @Kev_Capital_TA


At press time, DOGE traded at $0.405. DOGE price, 4-hour chart | Source: DOGEUSDT on TradingView.com Featured image created with DALL.E, chart from TradingView.com

News Feed

Web3 dev platform Mirror World launches first gaming rollup chain on Solana
Zhiyuan Sun8 hours agoWeb3 dev platform Mirror World launches first gaming rollup chain on SolanaThe software development kit allows Solana games to settle "millions of requests" during game sessions and settle
Martin Young3 hours agoCypher Protocol reveals $600K of stolen funds is now frozen on CEXsSolana-based Cypher Protocol has managed to stop around $600,000 of stolen funds from exiting various centralized exchanges.614 To
Tom Mitchelhill5 hours agoApple’s headset could redefine what being in the metaverse meansKPMG"s Head of Metaverse Alyse Sue believes the tech included in Apple’s mixed reality headset could shift the way users inter
Shiraz Jagati10 hours agoToken adoption grows as real-world assets move on-chainFrom real estate and digital art to government bonds, tokenizing real-world assets is no longer a thing of the future.1171 Total views19 Tot
Argentinians Are Now Using P2P Markets to Multiply Their Savings
Argentinians Are Now Using P2P Markets to Multiply Their Savings Argentinians are now discovering that P2P (peer-to-peer) markets can be used to maintain or multiply their savings
Helen Partz13 hours agoArbitrum DAO takes $56M of unclaimed ARB as airdrop deadline endsThe amount of unclaimed Arbitrum tokens accounts for 0.69% of ARB’s total supply of 10 billion.3724 Total views9 Total sharesListe
Moneygram Launches USDC Crypto-to-Cash Program in Certain Markets
Moneygram Launches USDC Crypto-to-Cash Program in Certain Markets Moneygram, a remittance and payments company based in the U.S., has announced the integration of USDC, a dollar-pe
Bitcoin Difficulty Increases 6% — It’s Still 48% Easier to Find BTC Blocks Than It Was 30 Days Ago
Bitcoin Difficulty Increases 6% — It"s Still 48% Easier to Find BTC Blocks Than It Was 30 Days Ago As expected, Bitcoin’s mining difficulty increased thi
Down From the Peaks: A Look at How Far Crypto Assets Have Slid From Their All-Time Highs
Down From the Peaks: A Look at How Far Crypto Assets Have Slid From Their All-Time Highs Digital currencies had a phenomenal year, and a great deal of the crypto assets in existenc
Rock Legend Gene Simmons Is Holding Crypto Despite Market Sell-Offs and FTX Collapse
Rock Legend Gene Simmons Is Holding Crypto Despite Market Sell-Offs and FTX Collapse Rock band Kiss’ lead singer Gene Simmons has confirmed that he is still holding crypto de
Zhiyuan Sun14 hours agoActor Adam DeVine appears in new Bitget exchange adDeVine is the second celebrity to partner with Bitget since the exchange brought on Argentine football star Lionel Messi last October.920 Total vi
Bahamas Property Worth $121 Million Acquired by FTX, SBF’s Parents, Report Unveils
Bahamas Property Worth $121 Million Acquired by FTX, SBF’s Parents, Report Unveils Bankrupt crypto exchange FTX and its founder’s parents have purchased properties for almost $