The Dogecoin price is already struggling amid the bearish pressures that have dominated the crypto market recently. After the initial drop to $0.2, the DOGE bulls had tried to hold the support and push for a recovery. However, due to the bearish headwinds of the last quarter of the year, Dogecoin price has since succumbed and is now trading below the $0.15 support level and continues to struggle.
Despite the already worrying price developments, crypto analyst Weslad says the worst may be yet to come. This is due to a corrective structure that has appeared on the meme coin’s price chart, and the result of this is a bearish flag. Like this one technical developments are unfoldingthe crypto analyst has warned investors of what to expect, and outlines why the Dogecoin price could see a major crash as it tries to recover.
Dogecoin price will rise and then fall
The analysis, that was shared on the TradingView website refers to the bearish flag as a harbinger of things to come. Weslad explains that the bearish flag had caused the price drop of Dogecoin that led to the down leg. As a result, sentiment has turned negative so far, suggesting more declines could follow.
Related reading
However, the crypto analyst points out that the Dogecoin price is still well below its breakout zone. Given this, it’s likely that there could be an initial rally of relief for the meme coin. If this rally continues, there would be an initial decline below $0.12 to form support above $0.118. Once this support is established, the resulting rebound is expected to push the Dogecoin price towards $0.2.
However, once this step is completed, the analyst predicts a tie deeper crash on the horizon. From the $0.2 mark, Weslad’s chart shows that Dogecoin price could fall another 70%, dropping to $0.05, which would mark a return to two-year lows.
Related reading
“The immediate plan is to monitor a pullback towards the minimum bearish flag targets around the $0.12 region, which aligns with the former structure support and breakout zone,” the crypto analyst said. This bottom area serves as a “supply during the retest’ and could cause the next decline.
For now, the analyst expects the Dogecoin price to remain on its bearish path. This depends on broader market performance, and so far a collapse seems more likely.
Featured image of Dall.E, chart from TradingView.com
#Dogecoin #price #rise #crashes #whats #goal