Dogecoin’s price is down today, primarily due to technical factors and it now faces the risk of a deeper correction of up to 70%. The drop in price is part of a broader correction that has seen a 12.5% retreat in over a week. There are several reasons behind Dogecoin’s pullback, including bearish divergence between its price and a key momentum indicator, rising Bitcoin dominance leading to a decline in altcoin market weight, a bearish rejection at a strong distribution area, and a reduction in the supply held by Dogecoin’s richest investors. From a technical perspective, Dogecoin needs to break above the upper trendline of its descending triangle setup to potentially reach $0.10 by the end of 2023. However, if the price breaks below the triangle’s lower trendline, it could see a further decline of up to 70% to $0.023 in Q1 2024. It’s important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.
Summary:
– Dogecoin’s price is down today, facing the risk of a deeper correction of up to 70%.
– The drop is part of a broader correction that has seen a 12.5% retreat in over a week.
– Reasons behind the pullback include bearish divergence, rising Bitcoin dominance, a bearish rejection at a strong distribution area, and a reduction in supply held by Dogecoin’s richest investors.
– From a technical perspective, Dogecoin needs to break above the upper trendline of its descending triangle setup to potentially reach $0.10 by the end of 2023.
– If the price breaks below the triangle’s lower trendline, it could see a further decline of up to 70% to $0.023 in Q1 2024.
– This article does not provide investment advice and readers should conduct their own research.
