DOGE slipped below key weekly MAs, risking a decline towards $0.06 on low volume and downward pressure from Bollinger.
A cryptocurrency analyst has warned that Dogecoin (DOGE) could fall to $0.06, citing technical indicators that suggest continued downward pressure, according to chart analysis posted on social media.
The analyst shared a weekly chart from TradingView showing memecoin trading below several key moving averages on the Coinbase exchange, according to the post reviewed by NewsBTC.
The technical setup shows that Dogecoin is trading below the 8-period exponential moving average (EMA), 200-period simple moving average (SMA), 34-period EMA, and 50-period SMA, according to the chart. Positioning below these indicators suggests that the weekly structure remains weak unless the price manages to regain these levels, the analyst said.
The Bollinger Bands displayed on the same chart place the asset closer to the lower band than the midline, which is consistent with downward pressure on the weekly time frame, 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 maintain higher levels seen earlier in the cycle, according to the data.
The token fell below the October 10 crash low, as seen in the chart. The next support level could be near a previous price level visited three weeks ago, which also marked the August 2024 low, according to the analysis.
The analyst’s thesis is based on the assumption that the asset remains below trend benchmarks in the short to medium term, with buyers needing to reclaim weekly indicator levels, starting with the 8 EMA, 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 traded memecoins in terms of market capitalization.