- dogecoin The price is approaching a key point as it approaches the support level at $0.048.
- Breaking this support level could trigger a 60% crash to fill FVG.
- A weekly candlestick above $0.109 will invalidate this bearish forecast for DOGE.
Dogecoin price is in a downtrend, which can be clearly seen on the weekly chart. The sudden crash in May and June exacerbated the correction that pushed the famous meme coin to a stable support level, showing that this drop could trigger another brutal crash.
Dogecoin Price Hits Borderline
Dogecoin peaked in May last year and managed to rise as high as $ 0.739. Things did not go well after that and DOGE produced five low peaks. These swing points can be connected to further visualize the correction phase.
Dogecoin price more recently broke the support area of $0.070 to $0.087, which indicates the massive selling pressure present in the ecosystem. Celsius NetworkThe decline from .
All these developments. despite DOGEThere is one last level of support that will prevent a drop at $0.048. However, a brutal sell-off can ensue if sellers overwhelm buyers, leading to a crash. In such a case, the Dogecoin price would drop roughly 60% and fill the Fair Value Gap (FVG), also known as price inefficiency, which runs from $0.041 to $0.014.
Although the markets are looking rather negative for many different reasons, it seems like investors continue to buy Dogecoin. The number of new addresses joining the network has been on the rise since June 2, and rose from 13,360 to 21,300 in two weeks.
The last time the number of new addresses was this high was around the May 12 crash. At first glance, this increase may seem bullish, but regardless, it may not be enough to prevent a disaster in the event of a large market-wide sell-off.
Regardless of the ongoing bearish narrative in the ecosystem, the downside could be delayed if Dogecoin price manages to bounce back from the $0.048 support level. However, only a one-week candlestick above $0.109 will invalidate the bearish argument. Confirmation of the uptrend will occur if DOGE sets a higher top than the April 4 high of $0.179.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.