Dogecoin (DOGE) could soon experience a significant price drop. A recent analysis shows that The price of Bitcoin is about to experience a price correction, which will also lead to a downtrend for the leading meme coin.
Dogecoin to fall along with Bitcoin
Dogecoin is set to fall alongside Bitcoin if the latter ultimately undergoes the massive price correction that Crypto Analyst Ali Martinez recently predicted that the flagship crypto could witness. In an X (formerly Twitter) jobMartinez mentioned that on Bitcoin’s 2-month chart, the TD Sequential indicator had presented a sell signal in anticipation of a price correction.
The crypto analyst also said that Bitcoin could drop as low as $40,600 if the crypto fails to hold the $51,000 support level. This predicted price drop for Bitcoin is also expected to lead to a drop in the price of Dogecoin due to the price correlation between the two crypto assets. Data of the IntoTheBlock Market Intelligence Platform shows that the price correlation of Dogecoin with Bitcoin is 0.9, indicating a strong positive price correlation.
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Bitcoin, as a leading cryptocurrency, is also known to have a massive impact on the broader cryptocurrency market. As such, a drop in price undoubtedly translates into downward pressure for DOGE. It is worth mentioning that Dogecoin was one of the coins that suffered the biggest price drop after Bitcoin crash on August 5 when the flagship cryptocurrency fell below $50,000.
At the same time, a Bitcoin crash is likely due to the flagship cryptocurrency’s historical tendency to post losses primarily in September. Besides Martinez, other crypto analysts like CryptoQuant’s head of research Julio Moreno have also predicted that Bitcoin could experience a significant price drop this month.
September was not the best month for DOGE either. Data CryptoRank’s data shows that the leading meme coin has suffered a monthly loss in all but three Septembers since 2014. The last time Dogecoin closed September in profit was in 2021.
Value chain indicators paint a mixed picture for DOGE price
Onchain metrics are currently painting a mixed picture for Dogecoin, with some bullish and others bearish. There has been an increase in large Dogecoin transactions, suggesting that crypto whales are accumulating massively right now. The imbalance in volumes between bids and asks is also bullish for Dogecoin.
On the other hand, the number of DOGE Addresses in-coin is down due to the bearish price action of the meme coin, especially with DOGE still below the crucial support level of $0.10. Meanwhile, DOGE Adoption remained stagnant, indicating a lack of interest in the coin even among new investors.
At the time of writing, Dogecoin is trading at around $0.09, up more than 1% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart by Tradingview.com
