Dogecoin (DOGE) has now joined the broader market turmoil, experiencing an 8% decline over the past 24 hours, resulting in nearly $5 million in liquidations.
One analyst has predicted that DOGE could potentially reach $1 as part of its final Elliott Wave cycle. Dogecoin (DOGE) emerges as one of the major losers among large-cap cryptocurrencies, dropping by 8% in the last day and 10% over the past week, now trading at $0.1103.
During this period, its trading volume over 24 hours has skyrocketed by 115%, with $1.05 billion worth of DOGE changing hands at the time of reporting. According to data analysis, DOGE fell to this level after breaching a critical support level at $0.1184, following four unsuccessful attempts since March 19.
Historically, this current price marks the lowest recorded in the past month, marking a decline of more than 29%. Further examination of Coinglass data reveals that DOGE leads in meme-driven liquidations, with over $4.92 million liquidated in the past day. Interestingly, this trend extends across the market, with Bitcoin also experiencing $90.06 million in liquidations during the same period.
Additionally, PEPE faced substantial liquidations totaling $4 million, countering expectations that the Shiba Inu (SHIB) burn rate surge of over 8,500% would stimulate ecosystem recovery.
Despite the ongoing market downturn, analysts note that 75.77% of DOGE addresses remain profitable currently. This profitability, coupled with bearish sentiment, has spurred a wave of profit-taking among short-term investors.
Other data supports the prevailing bearish outlook, although analysts foresee a potential rally. Analysis from IntoTheBlock highlights a significant outflow of DOGE from exchanges, with the liquidation heat map indicating a drop below $0.120.
Technical indicators such as the Relative Strength Index (RSI) at 32 suggest potential oversold conditions looming for DOGE. Similarly, the Moving Average Convergence Divergence (MACD) exhibits slight bearish momentum, with the signal line positioned above the MACD line. Moreover, the Bollinger Bands indicate a significant contraction, signaling potential decreased volatility or an impending significant movement. The upper Bollinger Band registers around $0.1353, while the lower band is at $0.1127. Adding to the bearish sentiment, the Awesome Oscillator reflects a prevailing bearish sentiment.
Despite the downward trajectory, crypto analyst Big Mike projects that DOGE could reach $1 by late 2024 or 2025. Drawing from the Elliott Wave theory, which utilizes recurring fractal wave patterns to predict market cycles, it’s established that DOGE has completed its five major waves, peaking at $0.68835 before entering a corrective phase involving waves W, X, and Y.
Currently in a new cycle, with waves (1) and (2) already formed, analysts anticipate wave (3) could propel DOGE to between $0.35 and $0.50. Following this, wave (4) is expected to correct the price before wave (5), potentially driving it into the $1 range. This aligns with predictions of a 1,500% move as reported by Crypto News Flash and analyst Kaleo.
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