Dogecoin at a Crossroads: Will It Crash to $0.09 or Bounce Back to $0.17?

Dogecoin (DOGE) has faced severe bearish pressure, struggling to attract a meaningful rally. Recent price declines have sparked significant discussion within the cryptocurrency landscape about DOGE’s next price trajectory.

Analyst Warns of Potential Decline

Cryptocurrency analyst YG Crypto has issued a cautionary projection that has drawn the Dogecoin community’s interest. He predicts the largest meme coin’s value may drop to $0.09. YG Crypto’s analysis comes amid persistent market instability and increased volatility. The cryptocurrency space has experienced notable price swings and a bearish trend in recent weeks.

Critical Support Zone in Focus

According to YG Crypto, Dogecoin is currently trading close to a crucial support zone between $0.11200 and $0.11500. If DOGE breaks below this support range, he anticipates a deep correction, possibly reaching the $0.095 threshold. “The overall downward channel also suggests a bearish bias,” the analyst added. Although DOGE may be poised for a potential downward trend, YG Crypto believes the digital asset could turn around and start moving upward. He notes DOGE might overcome dynamic resistance and bounce back to $0.170 and $0.176 if it can break above $0.16 and reach the upper limit of the channel.

Potential for a Bullish Reversal

Dogecoin, currently trading at about $0.12, has had difficulty holding its value during the wider market decline. Another cryptocurrency analyst, Kaleo, has offered insights on the negative movement, noting that he would not be surprised if DOGE dropped to $0.08 or $0.10. Kaleo highlighted that despite previous price pumps of 6,000% and 30,000% during the early days of DOGE, it has been moving sideways or down ever since. These explosive moves occurred 8-9 months post-Bitcoin Halving. Therefore, Kaleo does not expect any major move until December and February next year.

Memecoin Supercycle Could Trigger Surge

Kaleo believes the bullish trend could reverse and send DOGE to the 8-10 cent region, retracing the upward gain seen in February this year. “A similar trend break with a 30% drawdown and retrace happened in August 2020, several months before DOGE went mainstream and gigasending,” he added. Even though Kaleo foresees a bearish trend for Dogecoin, he still believes it could hit the $1 and $2 threshold in the upcoming months, triggered by a memecoin supercycle.

In conclusion, both analysts highlight the importance of the current support zone. While YG Crypto warns of a potential slide, Kaleo sees a future memecoin supercycle. The next few months will be crucial for Dogecoin’s price trajectory.

Read Also: Dogecoin Defies Crypto Crash: Analyst Predicts Massive Surge to $2

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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