Dogecoin Faces Crucial Test at $0.1184 Support Amid Profit-Taking Pressure

• Dogecoin (DOGE) joins the broad market in the ongoing bloodbath, declining by 8% in the last 24 hours and recording almost $5 million in liquidation. 

• Another analyst predicts that DOGE could rise to $1 in its final wave of the Elliott Wave theory. 

Dogecoin (DOGE) is one of the biggest losers among large-cap cryptos, declining by 8% in the last 24 hours and 10% in the last seven days to trade at $0.1103. 

Amid this backdrop, its 24-hour trading volume has recorded a staggering surge of 115%, with $1.05 billion worth of Doge changing hands at press time. According to our data, DOGE plunged to this level after breaking a crucial support level at $0.1184 following four unsuccessful attempts since March 19.

Historically, the current price has been the lowest ever recorded in the past month, when it declined by more than 29%. 

Our review of Coinglass data also shows that DOGE is at the forefront of meme liquidation, with over $4.92 million liquidated in the past 24 hours. Interestingly, this cut across the broad market, as Bitcoin also records $90.06 million in liquidation within the period under review. PEPE also experienced a staggering $4 million in liquidations, invalidating the theory that the over 8,500% surge in the Shiba Inu (SHIB) burn rate would trigger an ecosystem recovery. 

Regardless of the ongoing bloodbath, analysts have observed that 75.77% of DOGE addresses currently remain profitable. The profitability rate and the bearish sentiment have ignited a “wave of profit-taking among short-term investors.”

Other Data Supports the Bearish Thesis, But Analyst Anticipates a Rally

Our analysis of IntoTheBlock data confirms that there has been a substantial outflow of DOGE from exchanges, with the liquidation heat map indicating a dip below $0.120. 

The Relative Strength Index (RSI) shows a reading of 32, indicating that the asset may soon enter the oversold territory. Similarly, the Moving Average Convergence Divergence (MACD) shows a slight bearish momentum, with the signal line remaining above the MACD line. On top of that, the Bollinger Bands shows a serious contraction, which indicates a potential period of decreased volatility or upcoming considerable move. According to the data, the upper Bollinger Band shows a reading of around $0.1353, while the lower Bollinger Band shows a reading of $0.1127. The bearish sentiment is further reinforced by the Awesome Oscillator, which indicates bearish sentiment. 

Against the ongoing downward trend, crypto analyst Big Mike estimates that DOGE could hit $1 by late 2024 to 2025. Using the Elliott Wave theory, an indicator that uses the recurring fractal wave patterns to predict the market cycle, it was established that DOGE has completed the five major waves. It peaked at $0.68835 in the process before entering the corrective phase and forming waves W, X, and Y.                    

DOGE is in a new cycle with waves (1) and (2) already formed. According to the analyst, wave (3) could drag the DOGE price to between $0.35 and $0.50. After that, wave (4) is expected to correct the price. Finally, wave (5), the final phase, could push the price into the $1 zone. This aligns with a 1,500% move predicted by analyst Kaleo and reported by Crypto News Flash.