The memecoin economy has continued to take a hit amidst the bearish trend of the cryptocurrency industry, with the Dogecoin price being among the worst hit. Today, however, it is up by over 2 per cent, and the bullish trend is likely to continue throughout the session.
Despite today’s market gain, Dogecoin looks to have lost momentum with its users. Normally, Dogecoin relied heavily on high-profile individuals to push its trading volume and prices up. However, this has not happened in the past few months since the cryptocurrency industry entered a bear market.
The chart below shows that despite today’s price gain of over 2 per cent, Dogecoin is still in a strong and long-term bearish trend. Since August 17, the crypto has lost 30 per cent of its value despite September being a bullish month. The chart also shows the Williams Alligator indicator still giving bearish signals.
Therefore, based on the recent price action, my Dogecoin price prediction expects it to continue dropping for the next few trading session. There is a high likelihood that we might see it dropping and hitting the September price low of $0.055, which was set a week ago. If the price hits the price low and breaks to the downside, I expect Dogecoin to drop further and hit the $0.049 support level.
The current bear market in the cryptocurrency market reinforces my price prediction due to Dogecoin being significantly correlated with major coins such as Bitcoin. Therefore, any slight downward movement will likely drag Dogecoin down and result in the predicted bearish move. However, if the Dogecoin price continues to rise and hits the September price high of $0.068, my analysis will be invalidated. It will also be a signal to go long.
This post was last modified on Sep 27, 2022, 16:43 BST 16:43