Dogecoin price is already suffering amid the bearish pressure that has gripped the cryptocurrency market recently. After the initial drop to $0.2, DOGE bulls tried to hold support, and push for a bounce. However, with downward headwinds in the last quarter of the year, it rose The price of Dogecoin has since capitulated It is now trading below the $0.15 support level, and continues to struggle.
Despite the already worrying price performance, cryptocurrency analyst Weslade says the worst may be yet to come. This is due to the corrective structure that appeared on the meme price chart, the result of which was a bear flag. Like these Technical developments are unfoldinga cryptocurrency analyst warned investors what to expect, explaining why Dogecoin’s price could see a major collapse as it attempts to recover.
The price of Dogecoin rises and then falls
Analysis that was subscriber On TradingView, he points to the bearish flag as a precursor to what’s to come. Weslade explains that the bear flag triggered a collapse in the price of Dogecoin that led to a downtrend. As a result, sentiment has been skewed negative so far, suggesting that there may be further declines ahead.
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However, the cryptocurrency analyst points out that Dogecoin price is still well below the breakout zone. Given this, it is likely that there will be an initial rally for the memecoin. If this rally occurs, there will be an initial decline below $0.12 to form support above $0.118. Once this support is established, the resulting bounce is… It is expected to push the price of Dogecoin to $0.2.
Once this step is completed, the analyst expects a breakeven A deeper collapse is on the horizon. From the $0.2 mark, the Weslad chart shows that the price of Dogecoin could fall by another 70%, falling towards $0.05 in the process, meaning a return to its lowest levels in two years.
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“The immediate plan is to watch for a pullback towards the lower bound of bearish flag targets around the $0.12 area, which is in line with the previous structure support and breakout zone,” the cryptocurrency analyst said. This lower area serves as a “Offer to retest“It could lead to the next decline.
Currently, the analyst expects that Dogecoin price will continue on its downward trajectory. This depends on the performance of the broader market, and so far, a collapse seems more likely.
Featured image from Dall.E, chart from TradingView.com
