Dogecoin Could Decrease by 64% to $0.05 If Bitcoin Doesn’t Break Out
One cryptocurrency expert has made a concerning prediction about the future of Dogecoin, suggesting that the popular digital currency could plummet to as low as five cents within the next year. This forecast was shared by an experienced YouTube market analyst in a video posted on December 11th, where he discussed the technical factors influencing his outlook for the cryptocurrency market.
According to the analyst, known as VisionPulsed, Bitcoin has entered a bear market based on various technical indicators, including an eight-day moving average hovering around $102,000 and the Gaussian Channel. As long as Bitcoin remains below the $103,000 mark, VisionPulsed believes that Dogecoin is likely to decline significantly in value, potentially reaching as low as five cents by the end of 2022.
He highlighted patterns from 2022 where Dogecoin consistently made lower lows despite Bitcoin experiencing higher lows, indicating a decoupling of the two assets. Additionally, VisionPulsed referenced historical market cycles that typically see a final rally occurring 140-150 days after a major peak before a prolonged period of decline.
The analyst described the $0.05-$0.06 price range for Dogecoin as the most probable outcome over the next year unless Bitcoin manages to break out of its current bearish trend. He emphasized that this scenario is the “boring, brutal probability-weighted outcome” that investors should anticipate unless market conditions change significantly.
However, there is a caveat to this forecast. The analyst indicated that if Bitcoin were to achieve a new all-time high by February, this bearish projection for Dogecoin would likely be invalidated. In that scenario, he suggested that Dogecoin could see a resurgence in value and experience a significant rally, much to the delight of its supporters.
As of the most recent update, Dogecoin was trading at $0.1411, highlighting the volatility and uncertainty surrounding the cryptocurrency market. This prediction about Dogecoin’s potential decline to five cents serves as a cautionary reminder to investors about the inherent risks involved in trading digital assets.
While the forecast may sound alarming to Dogecoin enthusiasts, it’s essential to remember that the cryptocurrency market is highly unpredictable and subject to rapid changes. Despite this pessimistic outlook, the potential for a reversal in fortunes remains if key factors, such as Bitcoin’s performance, shift in the coming months.
