• 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. 

 

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