Dogecoin dropped massively, underperforming most top 10 cryptocurrencies.
However, the memecoin's price is now oversold, which promises an incoming buying opportunity.
It is trading below its crucial moving averages, indicating that the bears are currently in control.
However, a break above $0.10 could signal a bullish reversal.
Dogecoin's price action has disappointed investors so far, considering how it used to be a fan favourite in 2021 and reigned unchallenged through the memecoin era in the last bull run.
The memecoin recently lost its standing above the crucial $0.1 price level and plunged straight down to $0.08—this makes it one of the worst-performing assets among the top 10 cryptocurrencies on the market, and investors would like to know:
What comes next for Dogecoin?
According to data from CoinMarketCap, the crypto market has been severely hit, with the top 10 cryptocurrencies standing as no exception.
Bitcoin and Ethereum, for example, declined 17% and 26%, respectively, in the weekly timeframe. BNB and Solana also declined 16% and 20%, while XRP and Dogecoin declined 20% and 26%, respectively.
This makes Ethereum and Dogecoin some of the worst performers across the top 10 cryptocurrencies.
Ethereum and Dogecoin lead the losses.
This decline has been especially harsh for Dogecoin, considering how analysts maintained that a break below $0.1 was unlikely.
Further adding to the bearish sentiment was the fact that, on Monday, as the market slipped, a certain whale moved a staggering 117.52 million DOGE (worth around $11 million) to Robinhood, likely with the intention of selling.
This is without mentioning how the memecoin also experienced its worst liquidation rates since mid-June, where $13.08 million worth of long positions and $1.66 million worth of short positions were wiped off the market.
Dogecoin's price analysis shows a few interesting things, as shown below;
Dogecoin’s price action
To start things off, the chart above shows that the RSI has plunged towards the oversold zone for the first time since early July.
This, as bad as it looks, is a bullish sign.
This means that the memecoin might now be undervalued at its current standing of $0.08 and is at an attractive price.
Dogecoin below its major moving averages
However, the chart also shows that Dogecoin is trading underneath its 20-day, 50-day, and 200-day Exponential Moving Averages, which means that the bears are currently in control.
The memecoin currently trades at around $0.095 and is attempting to break again over $0.1.
However, it is worth mentioning that if, for some reason, the $0.08 support level fails, the next Dogecoin drop would take it straight down towards $0.06.
If the $0.1 price level gives way and a break + close occurs, this would be a major bullish signal to get in and ride the wave to the upside.
Furthermore, as illustrated in the charts above, Dogecoin trades in a descending wedge, which is a bullish overall pattern.
At this point, the ultimate bullish signal for Dogecoin would be the $0.115 price level because a break above would also be a break above the wedge.
The breakout point gets lower and lower
If validated, this pattern could push DOGE to higher milestones of $0.14 and $0.18 and even pave the way to $0.22.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.