Dogecoin (DOGE) price is down more than 46% this year, according to CMC data, boosted by sales pressures and general weakness in the meme coin sector. Notably, one cryptocurrency analyst warned investors about the potential downsides of holding Dogecoin in this current risk-averse market. It notes that broader financial markets are also under serious pressure amid persistent geopolitical tensions and rising energy costs.
Why Dogecoin is now a “weak” altcoin
Cryptocurrency market expert @ColinTCrypto has turned to share his bearish forecast for the price of DOGE and why he thinks the meme coin may still crash. In his post, the analyst described Dogecoin as a weak altcoin and warned that Investors should not hold it now..
The analyst shared a chart showing Dogecoin trading at around $0.09. The chart tracks the price movement of the meme coin since its 2021 peak until the present. After its explosive rise during the last bull market, DOGE mostly traded sideways, with occasional short-lived rallies, while the overall trend remained volatile and in a gradual decline.
@ColinTCrypto has noted that this downward trend culminated in the formation of the white triangle on the chart. He claimed that Dogecoin has already fallen to its first critical support zone around $0.09. The analyst noted that the meme coin is showing strong signs of continuing to break down, potentially reaching new lows.
Based on the downward trajectory of the white arrow on the chart, @ColinTCrypto predicts that Dogecoin could experience a major price correction at $0.073. At the time of writing, the meme coin is trading at $0.09, firmly holding this support as a breakout could confirm the analyst’s bearish outlook. Although market dynamics remain volatile, it is still unclear whether Dogecoin could fall towards $0.073. However, if it does, the value of DOGE would decrease by almost 20%.
Notably, @ColinTCrypto stated that most of the major altcoins on the market are showing equally bearish positions. He highlighted that they are on the verge of new collapses as the general market sentiment remains weak. The analyst also attributes the current downtrend to a risk-free environmentmeaning investors are actively avoiding risky bets in favor of safer options amid persistent geopolitical tensions and market uncertainty.
Analysts share similar bearish sentiments
Other analysts are also watching Dogecoin’s price movements and expressing concern about a possible drop in the near future. Market expert Osemka on X fixed that there is no more room left for altcoins to run, indicating that Dogecoin and other meme coins could soon fall.
The analyst noted in a previous post that Dogecoin has been “getting hit” by the Exponential Moving Average (EMA) over the past three weeks, reinforcing his bearish view that the cryptocurrency is on the brink of another crash.
Featured image by Peakpx, chart by Tradingview.com
Editorial process for bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We maintain strict sourcing standards and every page undergoes diligent review by our team of technology experts and experienced editors. This process ensures the integrity, relevance and value of our content to our readers.
