Dogecoin (DOGE) price is facing strong headwinds from the ongoing slump in the crypto markets. The biggest cryptocurrency, Bitcoin, is struggling to break above the $26,000 level. There is an increased selling pressure on altcoins in general and memecoins in particular. On Monday, the DOGE coin is trading at $0.061, down 0.49% till press time.
The strength or weakness of Bitcoin dictates the altcoin price action. As BTC remains stuck within a very narrow price range, altcoin investors have become more cautious. Many analysts are calling for a deeper correction in digital assets due to the increasing strength of the US dollar. However, when it comes to the memecoins like Dogecoin, the fundamentals don't mean a lot.
DOGE price rebounded strongly in August 2023 amid rumors of its integration into the social media platform X (Twitter). During the same month, it was also revealed that the Elon Musk-led company secured a digital asset license, further fuelling the speculations.
However, the weakness in Bitcoin triggered a sell-off in the biggest memecoin, and it lost most of its gains. Currently, Dogecoin price is trading 21.5% below its August 2023 high. Technical analysis reveals that Dogecoin is hanging by a thread, and bears may target new lows soon.
It is pretty clear from the following DOGE/BTC chart that the memecoin is constantly losing strength to Bitcoin. This pair affects the DOGE to USD price as it shows how the top dogcoin is performing against the biggest cryptocurrency.
Since November 2021, most of the price action for the DOGE/BTC pair has occurred within the 0.00000293-0.00000463 trading range. The bears have become very dominant after a breakdown below this range in April 2023. The last line in the sand for many traders is the June 2023 low of 0.00000202, which is 15% below the current price.
As long as the Bitcoin pair of DOGE remains below the range mentioned above, my Dogecoin price prediction will remain bearish. An objective analysis of the DOGE/USD chart shows that $0.058 is the most critical level on the chart right now. A breakdown below this level may send the price below $0.029.
The only way to avoid this 50% downside move is for the price to break above the $0.09 resistance level. It would only be possible if BTC breaks above $31,500 in the coming weeks. September is generally a bearish month for cryptocurrencies, so I don't expect any significant recovery within the next couple of weeks.
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