Dogecoin Under Pressure And ‘Going To Zero’, Analyst Says – Here’s Why

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As a researcher with experience in cryptocurrency analysis, I find Mags’ prediction for Dogecoin to be concerning but not entirely unexpected. Dogecoin has historically shown volatile price movements, and the recent sell-off by a large holder could be a harbinger of things to come.

The popular Dogecoin, known for its Shiba Inu mascot and origins as a humorous take on cryptocurrencies, is currently experiencing turbulence. A significant sale of $16 million worth of DOGE by a major investor has caused ripples within the community, fueling concerns about the sustainability of this meme coin in the long run.

Mags Charts A Worrying Course

Expert here: Crypto analyst Mags is known for delivering grim news about DOGE. Utilizing his unique charting technique, Mags pinpoints distinct price patterns in Dogecoin’s history. Among these phases, Phase 3 carries a particularly ominous forecast, indicating a possible collapse down to zero.

Bluntly, the analyst says the meme coin is “bearish” and is about to become worthless.

$DOGE is bearish and is going to zero.
don’t belive me? see for yourself
— Mags (@thescalpingpro) June 12, 2024

As an analyst, I’ve observed that DOGE‘s price behavior follows a cyclical pattern, with brief rises giving way to prolonged downturns. In the upcoming third phase, there may be a temporary jump in value up to $1.70. However, it is crucial for investors to exercise caution against being swayed by this transient sense of optimism.

Technical Indicators Flash Red

As a crypto investor, I’ve noticed that DOGE has experienced a 4% price surge recently. However, from a technical standpoint, things appear uncertain. The Relative Strength Index (RSI) hovers around the neutral zone, neither indicating overbought nor oversold conditions. This suggests that investors are indecisive about their next move.


Can Dogecoin Defy The Odds?

As a researcher examining Mags’ analysis and technical indicators for DOGE, I acknowledge the ominous signs casting doubt over the meme coin’s prospects. Nevertheless, a flicker of optimism emerges from the recent surge in trading volume. This increase in activity may be a precursor to a frenzy of purchases by devoted DOGE investors. Overcoming the first resistance level at $0.14 might signal a potential reversal. However, this promising outlook heavily relies on defying historical market trends and demands a substantial change in investor sentiment.

The outlook for Dogecoin is still unclear and open to interpretation. Elon Musk, a significant figure in driving the value of this meme currency through his influential social media presence, has been less active lately. With fewer bullish tweets coming from him, Dogecoin seems to lack a powerful force propelling it upward for an extended period.

Related Reading: Ethereum Longs Crushed! Who Got Burned In The $62 Million Fire Sale?

Dogecoin Price Forecast

According to CoinCodex’s technical assessment, Dogecoin’s price may drop by approximately 13% and reach $0.12 around July 13, 2024. The market sentiment currently leans towards bearishness, implying a general belief that prices will fall. Interestingly, the Fear & Greed Index registers at 70, signifying considerable investor enthusiasm or “greed.”

In the last month, Dogecoin has had a positive price change on approximately half of the days (14 out of 30), representing a 47% success rate for bullish trends. The cryptocurrency’s value has displayed noticeable instability during this timeframe, with a volatility rate of 5.10%.

With its increased instability and the predominantly pessimistic outlook, Dogecoin could experience additional price drops. However, signs of investor enthusiasm reflected in the Fear & Greed Index might cause brief price surges.

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2024-06-13 15:40