Crypto analysts have been largely bullish on Dogecoin ($DOGE), backing the top meme coin to start a major price rally.
This projection hasn’t shifted in the long-term perspective. However, experts are now cautioning of a major Dogecoin price crash in the short term.
With macroeconomic risks still at play, large-cap meme coins continue to show a bearish inclination. With such market sentiment, experienced investors are choosing to pivot towards small-cap tokens and new meme coins.
For instance, a crypto whale invested over $183k into Dogeverse, the new multichain meme coin that is quickly becoming the talk of the town.
Dogecoin Price Crash – $DOGE Set To Decline By 30%?
The Dogecoin price is currently trading at $0.148, down 7% on the daily time frame.
Much like the rest of the crypto market, Doge showed a strong bullish recovery to start the month of May. The meme coin market leader climbed nearly 40% from its local bottom to trade as high as $0.168 on May 4th.
However, a double top formation at the channel top means that the Dogecoin price has reversed a significant of its bullish candle.
Now, popular analyst Crypto Tony believes that Doge could wilt under even more oncoming selling pressure. He projects the Dogecoin price to plummet to the $0.106 level, a 30% correction from its current trading value.
However, he doesn’t believe that this price crash will happen in one fell swoop. The meme coin will likely display a consolidatory price action and potentially even test the $0.19 resistance.
Nevertheless, given the current bearish broader market outlook and macroeconomic risks, it is unlikely that Doge will be able to breach the resistance level and will eventually fall to the next major support level – $0.106.
Indeed, the entirety of the crypto market is showing bearish tendencies, with Bitcoin in danger of falling below $62,000. The market rallied after a dovish FOMC meeting last week. However, it appears that Fed Chair Jerome Powell’s words are no longer enough to assuage the market concerns.
All eyes now turn to the upcoming CPI inflation data report on May 15th. A bad report could result in fresh sell-offs and could kickstart Dogecoin’s decline to $0.106.
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