Renowned analysts believe Dogecoin price bottomed out after the recent crash
- DOGE price may be about to witness the start of a recovery, say analysts, as the altcoin reaches the end stages of its downward spiral.
- Trade volume in Dogecoin increased 200% according to data from CoinMarketCap, despite the crypto market being hit by a bloodbath.
- Analysts believe capitulation may have already taken place after the meme coin suffered bearish price trend for a year.
Dogecoin price plummeted 12% over the past week in a market wide crash. The 24-hour trade volume of the meme coin has increased despite a drop in its price. Analysts believe Dogecoin is on a downward spiral.
Dogecoin price could continue its downtrend
Amidst a marketwide crash, Dogecoin witnessed a decline in its capitalization, after 5.3% was shaved off of its market cap. Despite the price drop, Dogecoin witnessed a spike in its on-chain activity, with trade volume shooting up 200% overnight.
The meme coin emerged as one of the trending cryptocurrencies on Twitter based on data from Cointrendz. With Dogecoin’s recent price drop, $13.69 million in DOGE futures were liquidated as the meme coin continued its downward spiral.
Michaël van de Poppe, a cryptocurrency trader and analyst believes we are close to the end of the downward run. Capitulation may have occurred already, given altcoins are in a bear market for over a year.
Analysts believe Dogecoin’s recent crash was the last one and set an average 2022 price target of $0.14 per DOGE. The meme coin is preparing for a bullish breakout being one of the most used smart contracts among Ethereum whales.
Nica Osorio, a crypto analyst and trader pointed out several market catalysts in the Dogecoin chart that indicate the meme coin is heading towards a breakout in the coming weeks. Osorio read a falling wedge pattern on the Dogecoin price chart and predicted a bullish trend reversal.
$DOGE | $USDT: #DOGE falling wedge pattern is nearing breakout territory #Dogecoin pic.twitter.com/OUFbJokPhw
— ️IG CRYPTO T (@BigCryptoT) October 7, 2021
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
