The price of Dogecoin, one of the most popular meme cryptocurrencies, continues to decline, reaching $0.2180. This drop reflects general trends in the crypto market and casts doubt on predictions of a potential rise to $1.
Dogecoin Price Technical Analysis
Technical analysis on the daily chart shows that the anticipated rise to $1 may not occur soon. Dogecoin has formed a bearish chart pattern known as a rising wedge. This pattern consists of two ascending, converging trendlines. The upper line connects the highest swings since March 3, while the lower line links the lower lows since June 23.
A bearish breakout may happen when the two lines approach their confluence, which may occur soon.
The rising wedge is part of the right shoulder of the head-and-shoulders pattern that has been forming since October 2023. The head is at $0.4825, while the left shoulder is at $0.2275. The right shoulder is at $0.2865, and the neckline connects the lowest swings since October 2023.
These two patterns and the performance of key oscillators like the MACD and the Relative Strength Index (RSI) indicate further downside. The MACD indicator is about to cross the zero line, pointing downward, while the RSI has dropped below 50.
Potential Catalysts for DOGE
Despite the bearish forecasts for Dogecoin's price, two key catalysts could change this trend and push the price towards $1. The first is the potential rally in the crypto market. If Bitcoin (BTC) rebounds from the current downturn and continues to rise, there is a chance that other altcoins will follow suit.
The second important catalyst will be the approval of spot DOGE ETFs by the Securities and Exchange Commission (SEC) later this year. Companies like Bitwise, Grayscale, and 21Shares have filed for these funds, and the odds of the agency approving them are increasing since DOGE is a proof-of-work coin and has high liquidity.
Conclusion
Thus, the price of Dogecoin remains under pressure, and many analysts predict further declines. However, potential developments in the market, such as Bitcoin's recovery and ETF approvals, may act as factors to help DOGE overcome the current downturn and return to growth.
As investors await significant catalysts and changes in the crypto market, Dogecoin's future remains uncertain. The dynamics of prices and potential market strategies continue to attract attention.
