Dogecoin Analyst Predicts Drop Below 7 Cents Before Potential Surge to $1

• Crypto analyst CryptoKaleo has come out strong, predicting that Dogecoin’s price may drop below $0.07 before potentially surging to $1.
• While technical indicators suggest bearish momentum, reduced selling pressure from whales indicates the potential for a price reversal.

Dogecoin, launched in December 2013, still holds its position as one of the best-performing memecoins in the digital asset landscape. However, in line with the broader cryptocurrency sphere, the memecoin has been showcasing significant volatility.

Adding onto the uncertainty, renowned crypto analyst CryptoKaleo’s prediction has caused a stir among the crypto community. According to the analyst, Dogecoin is poised to potentially plummet below the $0.07 mark before rallying to the $1 level. CryptoKaleo shared his insights via a post on X (formerly Twitter), asserting:

Finally got the break back beneath ten cents. Price is currently hanging around support from the lows we saw last month. Still, see there being a decent chance we get one last flush to sub 7 cents from here. After that – no more pain. Just a few months of chop before full send to fulfill the prophecy of $1.00+.

At the time of writing, DOGE is swapping hands with $0.09534, marking a 14.12% surge in the last 24 hours. This price level resonates with a 26.14% decline in the past week, significantly impacting its market cap, which currently stands at $13.84 Billion.

Dogecoin’s Technical Analysis

Centering on Dogecoin’s Bolinger Band suggests potential bearish momentum. DOGE’s price trend has been pursuing behind the middle Bollinger Band. Additionally, the Chaikin Money Flow (CMF) indicator, currently at -0.19, further signifies selling pressure and capital outflow from DOGE. This negative CMF value further bolsters the bearish sentiment. 

Diverging to another critical indicator, Dogecoin’s Relative Strength Index(RSI) currently stands at 30.53. This level closely tracks the oversold threshold of 30. It is worth noting that both the CMF and the RSI show that money is exiting the digital asset. 

Decline in DOGE’s Network Activity

Network activity for Dogecoin has also seen a sharp decline, with active addresses dropping to around 47.3K from previous highs of around 345 K. Transaction counts, which are currently hovering around 204K, have followed a similar downward trend. This is an alarming call as it signals reduced investor engagement with DOGE.

However, there’s a glimmer of hope. Despite the bearish outlook, a report by a leading news outlet shows that large Dogecoin holders have reduced their selling activity, suggesting potential confidence in a price recovery.

As earlier reported on CNF, Changelly predicts Dogecoin could attain the $2 mark by 2031 and estimate a price level of $2.05 by August of that year, adding to the bullish sentiment for Dogecoin.