After a long period of muted price action, Dogecoin has finally entered a position where it can prepare for growth. With major events such as the rise participation of both tiny and gigantic investorsand also the indicators are becoming bullish, DOGE price seems ready for a significant rebound. However, there may be a tiny obstacle for the meme coin when it comes to achieving this uptrend, as one analyst has pointed to the possibility of a further crash.
DOGE crash or surge?
Cryptocurrency analyst Ali Martinez has come up with a mixed signal Dogecoin price forecast for the future. The analysis focuses on both bullish and bearish opportunities for the meme coin as it continues to trade within a trading range. Both of these scenarios are possible, and this time, the Stochastic RSI could win.
According to the analysis, Stochastic RSI has made a bearish crossover for Dogecoin price. This bearish crossover suggests that a price crash of the altcoin is coming. In this case, DOGE price may fall below $0.1 again. Moreover, Dogecoin may lose around 15% of its value if this bearish scenario comes true. In the worst case, DOGE price may fall as low as $0.087.
On the other hand, Dogecoin price is also showing some bullish tendencies, as indicated by a crypto analyst. The price is apparently “flirting with a bullish breakout,” which could be significant if it works out. In this case, a bullish breakout could push the meme coin up by as much as $0.16, which would mean a 45% breakout from its current price.
#Dogecoin flirting with a bullish breakout, but patience may be key! Stochastic RSI just had a bearish crossover, suggesting a potential short-term correction before the next move. photo:twitter.com/IZNsTJHksT
— Ali (@ali_charts) September 25, 2024
Dogecoin is looking for a breakthrough
Cryptocurrency analyst previously presented bullish scenarios for Dogecoin price but I attributed this to two key signals. The first one is the RSI actually making a successful breakout from the downtrend on the daily chart. The second one is the breakout above the $0.11 resistance on the chart.
One of these signals was triggered when the RSI broke the descending trendline. However, things have since changed as the Stochastic RSI has turned bearish in the meantime. DOGE price is still holding below $0.1, suggesting that bears are still in control of the price.
These events show more potential for Dogecoin price to actually break down from that point before bouncing back. But in the event of a market-wide recovery, DOGE could end up following the uptrend regardless.
