After a long period of weak price action, Dogecoin has finally entered a position where it could be preparing for a major uptrend. With major developments such as an increase in participation from both small and large investors, as well as indicators turning bullish, DOGE price seems poised for a major recovery. However, there could be a small hurdle for the meme coin when it comes to reaching this uptrend, as one analyst has pointed out the possibility of another crash from here on out.
A Crash or a Surge for DOGE?
Crypto analyst Ali Martinez has presented a Dogecoin price prediction with mixed signals for the future. The analysis focuses on both bullish and bearish possibilities for the meme coin as it continues to trade in a trading range. Both scenarios are possible, with the Stochastic RSI potentially winning out this time around.
According to the analysis, the Stochastic RSI has made a bearish crossover for the Dogecoin price. This bearish crossover suggests that a price crash is coming for the altcoin. In this case, the DOGE price could fall below $0.1 again. Furthermore, Dogecoin could lose about 15% of its value if this bearish scenario were to occur. In the worst case, the DOGE price could then drop to as low as $0.087.
On the other hand, Dogecoin price is also showing bullish trends, as the crypto analyst points out. The price seems to be “flirting with a bullish breakout,” which could be significant if it happens. In this case, the bullish breakout could see the meme coin’s price rise as high as $0.16 and that would mean a 45% breakout from the current price.
#Dogecoin Stochastic RSI continues to flirt with a bullish breakout, but patience may be key! Stochastic RSI has just turned bearish, hinting at a potential short-term correction before the next move. pic.twitter.com/IZNsTJHksT
— Ali (@ali_charts) September 25, 2024
Dogecoin Looking for a Breakout
The crypto analyst has previously presented bullish scenarios for Dogecoin price, but attributed this to two key signals. The first is that the RSI manages to break out of the downward trend on the daily chart. The second is a break above the $0.11 resistance on the chart.
One such signal was triggered as the RSI broke the descending trendline. However, this has since changed as the Stochastic RSI has turned bearish in the meantime. DOGE price is still trading below $0.1, suggesting that the bears are still in good control of the price.
These developments show that there is greater potential for Dogecoin price to crash before recovering. But in the event of a market-wide recovery, DOGE could end up following the bullish trend regardless.
