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Dogecoin Price Prediction as DOGE Forms Bearish Head and Shoulders Chart Pattern – 30% Drop Incoming?

Simon Chandler
Last updated: | 3 min read
Dogecoin Price Prediction as DOGE Forms Bearish Head and Shoulders Chart Pattern – 30% Drop Incoming?

DOGE has fallen by 8% today, with the Dogecoin price slipping to $0.149 in the past 24 hours, as the cryptocurrency market tumbles by 5%.

The meme token is actually up by 2% in a week, although it has fallen by 25% in a fortnight and by 20% in a month.

This puts it in danger of completing a classic head-and-shoulders pattern over the past couple of months, a move which would imply a drop to around $0.12.

However, it will arguably bottom out well before it completes such a chart pattern, with DOGE and the market in general entering a decidedly oversold position.

Dogecoin Price Prediction as DOGE Forms Bearish Head and Shoulders Chart Pattern – 30% Drop Incoming?

DOGE’s chart shows that the token has more or less bottomed out and that it should rebound very soon.

Its relative strength index (purple) dropped below 30 yesterday, and it has just begun rising towards 40, where it could potentially climb higher.

Dogecoin price chart.
Source: TradingView

Meanwhile, DOGE’s 30-day moving average (orange) has slipped below its 200-day (blue), and it may not be long before it has to come back up.

The coin’s trading volume still remains relatively subdued, at around $1.4 billion today (as opposed to $9 billion in early March), so it may remain vulnerable to a few more short-term falls before it rights itself.

It’s also interesting that its resistance (red) and support (green) levels are gently converging towards each other, something that tends to foretell a big move in either direction.

For some analysts, this could be another move downwards, with several analysts noting that the token is forming a head-and-shoulders (or ‘Bart Simpson’) pattern.

Given that some whales have moved DOGE to trading platforms in recent days, we could see the coin get very close to completing the above pattern.

However, it’s worth reiterating that the coin has already entered an oversold position, so buyers may be about to swoop in to begin buying the coin at a discount.

And while the wider market appears to be reacting to the news that the Department of Justice wants to slap Binance founder Changpeng Zhao with a three-year prison sentence (while the SEC also wants to exact more than $4 billion in damages from Terra Labs and Do Kwon), it should pick up in the coming weeks once things stabilize.

We could see the Dogecoin price return to $0.2 by the summer, and to $0.5 by the end of the year.

New Doge-Themed Tokens for New Rallies

Because Dogecoin may not be able to move until the wider market gets into gear again, some traders may need to turn to newer, more volatile coins if they want faster gains.

There are several interesting new meme coins that have emerged in recent weeks, with some currently holding their presales and generating lots of hype.

A very good example of this is Dogeverse (DOGEVERSE), a multi-chain meme token that has raised over $10 million in its token offering.

DOGEVERSE has positioned itself as the first Doge-themed multi-chain cryptocurrency, and accordingly it will run on Ethereum, BNB Chain, Solana, Avalanche and Base.

This is highly bullish as far as its price goes, since gaining traction on multiple chains and apps will only boost demand for the token.

On top of this, DOGEVERSE boasts a hard cap of 200 million tokens, making it a deflationary cryptocurrency.

And when you add staking into the mix, there’s a real chance that the coin could experience a strong supply squeeze, which in turn will drive its price upwards over time.

Its presale doesn’t have much more time left to run, but newcomers can join it by visiting the official Dogeverse website.

1 DOGEVERSE currently costs $0.000302, a price that may end up seeming like a massive discount once the token launches and lists on exchanges.


Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.