Dogecoin price and the phrase “to the moon” have become intertwined in the past few months, with many in the cryptocurrency space holding out that it can become the currency of the internet. However, the recent cryptocurrency crash has given us a reason as to why that might not be achieved any time soon.
For context, Dogecoin has dropped by 6 per cent in today’s trading session. This month, the cryptocurrency has been in an aggressive price drop and has seen a decline of 31 per cent. However, the current bearish trend has not started in the past few weeks. Looking at the year-to-date data, dogecoin has also dropped by 48 per cent.
The question is, is this drop temporary, or are we expecting further decline? Due to the recent drop in other cryptocurrencies such as Luna, some analysts have poised with the theory that Dogecoin may be next.
However, the above is the worst-case scenario, and other dogecoin enthusiasts, including Elon Musk, have hope in its dominance. In recent months, Elon Musk has suggested that dogecoin can be allowed to be traded on Twitter. He has also suggested in the past that he would allow transactions to be carried out in his companies using doge. Therefore, despite the recent price lows of Dogecoin, there is still a glimmer of hope that it may recover going into the future.
Dogecoin Price Prediction
Dogecoin has not been doing great in the past few days. In today’s trading session, the crypto has lost six per cent of its value. The session also looks poised to continue with the drop, and there is a high likelihood of the prices closing below $0.085.
Looking at the daily chart below, we can see the prices recently broke out of the $0.11 support level. After a week of market bleed, this saw the entire cryptocurrency industry go into a sell-off frenzy. However, the markets slightly recovered throughout the weekend, and in today’s session, the bearish move resumed. There is also a high likelihood that the current bearish move will see the prices drop below $0.06. This is a level the cryptocurrency has not traded since April 2021.
However, if the prices close above today’s session open price of $0.092, then my analysis will be invalidated. It will also mean a likely bullish reversal is in the offing.