Dogecoin price has continued to follow in the footsteps of major coins, which has been aggressively bearish for the past three months. Today, Dogecoin is down by more than 3 per cent, and the intraday data shows a likelihood it might close lower.
The drop comes despite positive fundamentals, including Elon Musk’s endorsement of the cryptocurrency again, by indicating people can use Dogecoin to pay for his latest product, a fragrance known as Burnt Hair. However, unlike when such news moved the Dogecoin price, the announcement looks not to have had an impact, as the price continued its bearish trajectory.
Part of the reason for this is due to the current crypto industry, which has also been bearish. Dogecoin, which is significantly correlated with the industry trend, and most major coins, including Bitcoin, has found itself getting dragged down as crypto market conditions worsen.
Dogecoin price Prediction
The chart below shows Dogecoin trading near a recent support level of $0.056. The chart also shows since October 4, the prices have been in an aggressive bearish trend which has seen it drop 15 per cent. The Williams Alligator indicator is also giving strong bearish signals.
This week, Dogecoin is also down by more than 8 per cent and continues to show the same bearish aggressiveness that has contributed to the crypto dropping by more than 80 per cent in 2022.
Therefore, based on the recent price action, I expect the current bearish trend to continue. I expect the Dogecoin price to hit the $0.056 support level and trade below it. There is a high likelihood that, in the next few trading sessions, we might see the Dogecoin price trading below the $0.050 price level. A trade above the $0.060 price level will invalidate my bearish analysis.