Dogecoin (DOGE) has plunged dramatically, mirroring the broader cryptocurrency market’s instability. Renowned crypto analyst, CryptoKaleo, has ignited investor concerns by predicting a potential plummet to below 7 cents.
In a recent X post, CryptoKaleo stated, “Finally got the break back beneath ten cents. Price is currently hanging around support from the lows we saw last month. Still see there being a decent chance we get one last flush to sub 7 cents from here.
After that – no more pain. Just a few months of chop before full send to fulfill the prophecy of $1.00+.”
At press time, DOGE is trading at $0.082, representing a staggering 23.91% drop in the past 24 hours and a 38.86% decline over the past week. With a circulating supply of 150 billion DOGE, the market capitalization stands at approximately $11.96 billion.
Bearish Signals Dominate Dogecoin
Technical indicators paint a grim picture for Dogecoin. The price is currently below the middle Bollinger Band, signaling bearish momentum. The widening of these bands suggests heightened volatility.
The Chaikin Money Flow (CMF) at -0.19 indicates significant selling pressure and capital outflow from DOGE. This reinforces the bearish sentiment as investors are exiting their positions. Additionally, the Relative Strength Index (RSI) hovers near the oversold level of 30, suggesting potential short-term reversal or consolidation. However, given the overall bearish context, investors should exercise caution before making buying decisions based solely on RSI.
Network Activity Slumps
Network activity has also dwindled. Active addresses have plummeted from peaks exceeding 345K to around 47.3K. While transaction counts exhibit sporadic spikes, the overall trend is downward, currently at 204K. This decline reflects reduced user engagement and interest in Dogecoin.
Also Read: Dogecoin Down 17.86%: Analysts Predict 400% Surge, Mirroring 2020 Run
Interestingly, despite the bearish outlook, large Dogecoin holders have reduced their selling pressure, decreasing from 192 million to 42 million. This suggests potential confidence in a future price recovery.
If Dogecoin manages to close above the critical support level of $0.105 on daily charts, it could signal a potential trend reversal and attempt to challenge the $0.13 resistance level. However, given the current market conditions and bearish indicators, investors should approach Dogecoin with extreme caution.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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