Dogecoin Beneath Stress And 'Going To Zero', Analyst Says

The beloved Dogecoin, the Shiba Inu-faced cryptocurrency that began as a joke, is going through a ruff time. A latest $16 million sell-off by a big holder, probably a “whale” investor, has despatched shockwaves by way of the DOGE group, elevating questions concerning the meme coin’s long-term viability.

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Mags Charts A Worrying Course

Crypto analyst Mags has emerged because the harbinger of doom for DOGE. Utilizing a self-developed charting methodology, Mags identifies distinct phases in Dogecoin’s historic value actions. Section 3, based on Mags, paints a very bleak image, suggesting a possible plummet to zero.

Bluntly, the analyst says the meme coin is “bearish” and is about to develop into nugatory.

$DOGE is bearish and goes to zero.

don’t belive me? see for your self 👇 pic.twitter.com/p4jYYDlbLZ

— Mags (@thescalpingpro) June 12, 2024

This prediction hinges on the cyclical nature of DOGE, the place temporary value surges are adopted by prolonged durations of decline. Whereas a short lived spike to $1.70 is feasible in Section 3, Mags warns traders to be cautious of such fleeting optimism.

Technical Indicators Flash Purple

Regardless of a latest 4% value improve, technical indicators paint a regarding image. The Relative Power Index (RSI) sits squarely in impartial territory, neither overbought nor oversold, reflecting investor indecision. Extra importantly, DOGE is at the moment buying and selling beneath its key transferring averages, with the 200-day EMA performing because the final line of protection at $0.123. A breach of this assist stage might set off a domino impact, sending DOGE tumbling additional in the direction of the $0.07 mark.

Can Dogecoin Defy The Odds?

Whereas Mags’ evaluation and technical indicators solid an extended shadow, there’s nonetheless a glimmer of hope for the meme coin. The latest uptick in buying and selling quantity suggests heightened exercise, probably indicating a shopping for spree by loyal DOGE holders. Moreover, overcoming the primary resistance stage of $0.14 might sign a possible turnaround. Nevertheless, this optimistic state of affairs hinges on defying historic tendencies and requires a major shift in market sentiment.

The way forward for Dogecoin stays shrouded in uncertainty. Elon Musk, the self-proclaimed “Dogefather” and a serious influencer of the meme coin’s value, has been comparatively quiet not too long ago. With out his typical bullish tweets, DOGE lacks a powerful catalyst for a sustained push upwards.

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Dogecoin Worth Forecast

In the meantime, based mostly on technical evaluation by CoinCodex, the value of Dogecoin is predicted to decrease by 13%, reaching $0.12by July 13, 2024. The present sentiment is Bearish, suggesting a prevailing expectation of downward value motion. Regardless of this, the Worry & Greed Index stands at 70, indicating a excessive stage of Greed amongst traders.

Over the previous 30 days, Dogecoin has skilled 14 out of 30 inexperienced days, equating to a 47% success charge in constructive value actions. The noticed value volatility throughout this era is 5.10%, indicating vital fluctuations in its market value.

This heightened volatility, mixed with the bearish sentiment, means that Dogecoin might encounter additional value declines, though investor optimism as indicated by the Worry & Greed Index might introduce short-term value rallies.

Featured picture from CSF Hungary, chart from TradingView