DOGE has slid below key weekly MAs, risking a drop toward $0.06 on weak volume and downside Bollinger pressure.
Summary
- DOGE trades below weekly 8 EMA, 34 EMA, 50 SMA and 200 SMA, keeping structure bearish until reclaimed.
- Price sits near the lower Bollinger Band with low volume, reinforcing downside risk toward the analyst’s $0.06 target.
- DOGE recently broke below the Oct. 10 crash low; next support aligns with the August 2024 bottom near prior weekly demand.
A cryptocurrency analyst has warned that Dogecoin (DOGE) could decline to $0.06, citing technical indicators that suggest continued downside pressure, according to a chart analysis posted on social media.
The analyst shared a weekly chart from TradingView showing the memecoin trading below multiple key moving averages on the Coinbase exchange, according to the post reviewed by NewsBTC.
The technical setup shows Dogecoin trading beneath the 8-period exponential moving average (EMA), 200-period simple moving average (SMA), 34-period EMA, and 50-period SMA, according to the chart. The positioning below these indicators suggests the weekly structure remains weak unless the price can reclaim those levels, the analyst stated.
Bollinger Bands displayed on the same chart place the asset closer to the lower band than the midline, consistent with downside pressure on the weekly timeframe, according to the analysis. The analyst’s $0.06 target would represent a move below the displayed lower Bollinger Band, framing the projection as a deeper continuation scenario.
The chart indicates continued low trading volume, with the price sliding after failing to hold higher levels visible earlier in the cycle, according to the data.
The token has fallen below the October 10 crash low, the chart shows. The next support level could be near a previous price point visited three weeks ago, which also marked the August 2024 bottom, according to the analysis.
The analyst’s thesis rests on the premise that the asset remains below near-term and medium-term trend references, with buyers needing to reclaim weekly indicator levels, starting with the EMA 8, to invalidate the bearish outlook.
Dogecoin, originally created as a satirical cryptocurrency, has experienced significant volatility throughout its trading history and remains one of the most widely traded memecoins by market capitalization.
