- Dogecoin’s on-chain activity has decreased, raising concerns among investors.
- The current Elliott Wave structure suggests potential price declines for DOGE.
- DOGE must maintain its position below $0.0837 to avoid a bearish trend.
In a recent YouTube video, the trading channel More Crypto Online provided a comprehensive analysis of Dogecoin’s (DOGE) current market performance. The video highlighted the ongoing sluggishness on DOGE’s charts and a notable decrease in on-chain activity, which has raised concerns among investors. Based on their latest analysis, the meme coin is at risk of experiencing a swift drop in the coming weeks. This information is valuable for investors making informed decisions in the volatile cryptocurrency market.
According to their analysis, Dogecoin appears to be tracing a downward trajectory on its 8-hour chart, indicating an ending diagonal pattern. The video further highlights that the November high was a starting point for DOGE’s price correction, which was followed by a second upward move.
According to the analysis conducted by the More Crypto Online team, the current Elliott Wave structure lacks a definitive third wave, which implies the possibility of a fourth and fifth wave. This suggests that there may be additional price declines shortly. Despite the intricate nature of the structure, the team noted that the current wave count appears to be in line with prevailing market conditions.
Moreover, the video underscored that the third wave, which is deemed a corrective structure, was manifesting itself in the form of a diagonal pattern. Consequently, the market is presumed to be in the C wave of an ABC correction structure. While there may be other plausible interpretations, the prevailing analysis indicates a potential downturn in the value of Dogecoin.
The analysis conducted by the experts also placed significant emphasis on the criticality of DOGE maintaining its position below the $0.0837 threshold. The accompanying video highlighted the potential ramifications of breaching this resistance level, which could trigger a highly bearish trend and rapidly descend towards the subsequent support range of $0.05 to $0.02.
Although they did recognize the possibility of a slight uptick, the prevailing sentiment was that the market would remain bearish until a significant upward catalyst was detected.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
