Technical indicators are pointing to a major breakdown of the Dogecoin price, as an analyst projects a decline to $0.2. This bearish prediction could be game over for Dogecoin, as the meme coin has formed a Double Top pattern, indicating that it may experience further downside pressure this quarter.
Double Top Pattern Signals Dogecoin Price Crash
According to a TradingView analyst known as ‘MelikaTrader94,’ the Dogecoin price is showing signs of bearish momentum as a new Double Top pattern aims to drive its value to new lows. The analyst shared a chart highlighting the Double Top, which appears to be an M-shaped pattern where the price of a cryptocurrency reaches a high point twice, with a slight dip between the two peaks.
The two peaks form resistance, and once a cryptocurrency breaks below the neckline, it could trigger further downside. Essentially, the break of the Double Top’s neckline confirms a bearish continuation for the Dogecoin price.
Notably, the TradingView expert has highlighted Dogecoin’s Relative Strength Indicator (RSI) at the bottom of the chart. This RSI shows a bearish divergence, meaning that the meme coin’s price recently made a higher high, but its RSI made a lower high at the same time. This trend indicates weakening momentum, suggesting that buying pressure may be waning and a possible price correction.
As a result, the TradingView analyst has predicted that DOGE could drop to two support levels. The first is a decline to a temporary support zone (S1) at $0.22, where a slight price bounce may also occur. The next bearish target for the popular meme coin is the $0.176 to $0.18 support level (S2). If Dogecoin crashes to this target, it could act as a strong support zone where buyers may come in, and prices stabilize before a potential reversal.
The analyst warns that if DOGE fails to hold S1, it will likely drop to S2, completing the Double Top pattern. If the meme coin holds on to S2, a potential bullish recovery could be in store for it. Nevertheless, the TradingView expert has confirmed that DOGE’s price action remains under pressure, with its bearish trend increasingly dominant.
DOGE Price Rebound Incoming?
The Dogecoin price is currently on a severe downward momentum, trading at $0.25 after declining by over 32% in the past month. Contrary to investors’ expectations, Dogecoin has continued to decline significantly, dropping by over 4% in the past 24 hours and another 5.5% over the past week.
Despite this bearish trend, crypto analyst Ali Martinez suggests that Dogecoin may be gearing up for a significant price rebound to the upside. The analyst revealed that the Dogecoin TD Sequential has flashed a buy signal on it’s 4-hour chart, signaling a potential for a bullish turnaround.
