DOGE ( DOGE ) price prediction: big dump of 25% to reach $0.2180, key bearish pattern forming, how far is the rebound to $1?

The leader Meme coin DOGE has seen its price continue to decline, having fallen 25% from the July high, currently trading at $0.2180, with a market capitalization shrinking to $32 billion. Technical analysis shows that the DOGE daily chart is simultaneously forming a bearish rising wedge pattern and a head and shoulders pattern since October 2023, with multiple indicators suggesting increased downside risk, potentially dipping to the June low support of $0.1415. This article deeply analyzes the technical trends of DOGE, potential catalysts (such as Spot ETF approval), and future price predictions for DOGE, providing investors with key trading strategy references.

[Technical Breakdown: Double Bearish Patterns Overlapped, Downward Risks Significantly Intensified]

(Source: TradingView)

The price of DOGE continues to decline in tandem with the broader cryptocurrency market. DOGE has experienced a big dump to $0.2180, down 25% from its peak in July. Its market capitalization has shrunk to over $32 billion. The daily chart shows that the long-awaited surge to $1 may not happen soon, as DOGE has formed a bearish chart pattern, creating an ascending wedge pattern. This pattern consists of two upward converging trend lines. In this case, the upper line connects the highest swing points since March 3, while the lower line connects the lower lows since June 23. A bearish breakout may occur soon as the two lines approach their convergence point. The forming ascending wedge is part of the right shoulder of the head and shoulders pattern that has been forming since October 2023. The head is at $0.4825, while the left shoulder is at $0.2275. The right shoulder is at $0.2865, and the neckline connects the lowest swing points since October 2023.

[Indicators Overall Weakened: MACD and RSI Signals Consistently Pointing to Further Downside] Both of these patterns, along with the performance of top oscillators such as MACD and Relative Strength Index (RSI), indicate a further downtrend. The MACD indicator is about to cross below the zero line, pointing downwards, while the RSI has fallen below the 50 level. The most likely scenario is that the DOGE price will dip and retest the support level of $0.1415, which is its lowest level in June. These technical signals provide important warnings for investors making DOGE price predictions and looking for entry points.

[Potential Catalysts: Can the Overall Market Rebound and the Approval of the Spot DOGE ETF Reverse the Downtrend?] Despite the bearish price prediction for DOGE, two key catalysts could render this expectation invalid and push it to $1. The most important catalyst is the occurrence of an overall rebound in the cryptocurrency market. If Bitcoin (BTC) rebounds from its current downtrend and continues to rise, other altcoins may follow suit. Another significant catalyst would be the approval of the Spot DOGE ETF by the U.S. Securities and Exchange Commission (SEC) later this year. Bitwise, Grayscale, and 21Shares have all applied for these funds, and the likelihood of approval by the agency is increasing as DOGE is a proof-of-work (PoW) token similar to Bitcoin and has high liquidity with billions of dollars in trading volume. The approval of the DOGE ETF would be bullish, as it would attract more capital inflow from U.S. investors, such as those already invested in BTC and Ethereum funds.

Conclusion: Overall, the current technical situation of DOGE is severe, with the suppression of a double bearish pattern and the weakening of key indicators, making it likely to face significant downward pressure in the short term, with a high probability of re-testing the key support at $0.1415. For short-term traders, risk management should be the top priority. However, the long-term narrative has not completely collapsed. The potential for reversal mainly relies on two macro factors: first, whether the Bitcoin market can stabilize and lead a new wave of overall growth in the crypto market; second, whether the SEC will historically approve the Spot DOGE ETF, thus bringing significant incremental funds and legitimacy to DOGE. Investors should remain cautious in the current environment, closely monitor Bitcoin price trends, any statements from the SEC regarding ETFs, and changes in overall market risk appetite, waiting for clearer reversal signals before making layout considerations.