Because the crypto market balances close to $3.2 trillion and Bitcoin holds at $98,000 ranges, meme cash are taking a big hit. Falling from the latest peak of $100 billion to $73.80 billion, the meme coin market cap has dropped by almost 36%.
Dogecoin has fallen to $0.26, at the moment holding a market cap of $39.56 billion, accounting for greater than 50% of the meme coin phase. With the short-term volatility turning extraordinarily bearish for meme cash, will Dogecoin tank below the $0.20 psychological mark?
Dogecoin Eyes Reversal in Ping Pong Type
In a latest X Put up by Dealer Tardigrade, the crypto analyst highlights a possible reversal run in Dogecoin. Based mostly on the 8-hour time frame evaluation, DOGE is prepared for a ping-pong reversal after a double-top reversal.
Dogecoin is presenting a possible ping-pong sample formation with a lower cost rejection from the $0.20 psychological mark. With the 8-hour RSI line within the oversold area for the second time teases a possible bullish reversal. With the ping-pong fashion, the Dogecoin value might re-challenge the earlier swing excessive at $0.41.
Dogecoin in a Falling-Wedge Sample Towards Bitcoin
On an even bigger time frame, the month-to-month value evaluation of DOGE towards Bitcoin reveals a falling-wedge sample. After three consecutive bearish months towards Bitcoin, DOGE exhibits vital weak point.
Nonetheless, a bullish breakout of the falling-wedge sample will probably end in a parabolic rise to a possible new all-time excessive. On the flip aspect, a bearish continuation will probably take a look at the earlier swing low close to 0.0000015 BTC.
Is a Parabolic Bull Run on the Horizon?
Whereas the short-term evaluation hints at a possible restoration, Grasp Kenobi, in his latest X publish, highlights a possible bull run based mostly on the historic value pattern. Kenobi, the crypto analyst, divides the Dogecoin value pattern over the previous 12 months into two completely different pumps.
The primary began on February 5, and the second on August 5 within the 12 months 2024. The primary pump resulted in a 3x rally. Nonetheless, the August 5 crash worn out all of the bullish features.
Historic Patterns: A Story of Two Pumps
Since then, DOGE rallied one other 6x with final evening’s crash, erasing 57% of the latest features. In each situations, the bullish restoration has been pushed by excessive momentum.
In such a case, the latest lower cost rejection in Dogecoin hints at a brand new restoration run. Within the first attainable situation, DOGE might repeat final 12 months’s sample and attain the height by the tip of February.
Within the second situation, a repeat of the August section might happen, the place an prolonged consolidation leads to a fast high-momentum bullish rally. In both of the circumstances, DOGE is more likely to keep a sideways or bearish shift for the following few months earlier than beginning a parabolic rise with an altcoin season.