Dogecoin Price Prediction Crucial Support Fails Imminent Death Cross Expected
Dogecoin encountered a persistent downtrend on Tuesday, following the broader cryptocurrency market’s decline. The value of DOGE dropped to a nadir of $0.1140, marking its lowest point since March 1st, 2024. Notably, it has decreased by close to 50% from its peak earlier this year. The ongoing cryptocurrency sell-off has been exacerbating the situation.
Since March, Dogecoin has been under pressure as the focus of many meme traders shifted towards newer tokens such as Pepe, Dogwifhat, and Brett. Throughout this period, established meme tokens like DOGE, Shiba Inu, and Baby Doge have lagged behind their more recent counterparts. Additionally, the performance of Dogecoin has been negatively impacted by the trajectory of Bitcoin, the primary cryptocurrency globally. Despite several attempts to surpass the resistance at $72,000, Bitcoin has struggled to make significant gains.
The lack of additional positive drivers following the SEC’s green light for spot ETFs and the recent halving event has left Bitcoin grappling for momentum. Typically, alternative cryptocurrencies like Dogecoin experience upticks when Bitcoin performs well. Furthermore, uncertainties surrounding the Federal Reserve have been looming, with the institution signaling only one anticipated rate cut despite indications of up to four cuts during the year. Notably, assets with higher risk profiles, including Dogecoin, tend to thrive when the Federal Reserve adopts a dovish stance.
Analyzing Dogecoin’s price forecast through its daily chart, the peak value of $0.2290 in March coincided with Bitcoin’s surge to an all-time high. However, subsequent market dynamics led to a significant downturn for Dogecoin, with the cryptocurrency plunging to its March 1st low. Noteworthy technical indicators, such as breaching the lower boundary of the Andrew’s Pitchfork tool and dropping below the critical support level at $0.1208, paint a challenging picture for Dogecoin. Moreover, falling below the 200-day moving average has set the stage for a potential formation of a death cross, a precarious pattern in technical analysis.
The Relative Strength Index (RSI) has been steadily declining and has dipped into the oversold territory at 30 for the first time this year. Concurrently, the Awesome Oscillator has remained below the neutral zone since June 8th. As a result, it is probable that the price of Dogecoin will continue its descent, with sellers eyeing the psychological barrier at $0.10. A breach below this level could pave the way for a drop to $0.0750, marking its lowest point seen in January.
