The ongoing bloodbath in the cryptocurrency market has taken its toll on Dogecoin (DOGE), which has seen an 8% decline in the last 24 hours, resulting in nearly $5 million in liquidation.
According to an analyst, DOGE could experience a final wave in the Elliott Wave theory that could potentially drive its price to $1.
DOGE, one of the largest-cap cryptocurrencies, has been among the biggest losers, with an 8% drop in the last 24 hours and a 10% decline in the last seven days. It is currently trading at $0.1103.
Despite the downturn, the 24-hour trading volume for DOGE has seen a staggering surge of 115%, with $1.05 billion worth of transactions taking place at the time of writing. Our data shows that DOGE reached this level after breaking a crucial support level at $0.1184, following four unsuccessful attempts since March 19.
Historically, the current price is the lowest recorded in the past month, with a decline of over 29%.
Our analysis of Coinglass data reveals that DOGE is leading the way in meme liquidation, with over $4.92 million liquidated in the last 24 hours. Interestingly, this trend extends across the broader market, as Bitcoin also experienced $90.06 million in liquidation during the same period. PEPE also saw a significant $4 million in liquidations, debunking the theory that the surge in the Shiba Inu (SHIB) burn rate would trigger an ecosystem recovery.
Despite the ongoing bloodbath, analysts have noted that 75.77% of DOGE addresses are currently profitable. This, coupled with bearish sentiment, has prompted a wave of profit-taking among short-term investors.
Additional data supports the bearish thesis, although one analyst anticipates a rally. Our analysis of IntoTheBlock data indicates a substantial outflow of DOGE from exchanges, with the liquidation heat map showing a dip below $0.120. The Relative Strength Index (RSI) is currently at 32, suggesting that the asset may soon enter oversold territory. Similarly, the Moving Average Convergence Divergence (MACD) shows a slight bearish momentum, with the signal line remaining above the MACD line. The Bollinger Bands also indicate a period of decreased volatility or a significant movement in the near future, with the upper Bollinger Band at around $0.1353 and the lower Bollinger Band at $0.1127. The bearish sentiment is further supported by the Awesome Oscillator.
Despite the downward trend, crypto analyst Big Mike predicts that DOGE could reach $1 by late 2024 to 2025. Using the Elliott Wave theory, which predicts market cycles based on recurring fractal wave patterns, it has been determined that DOGE has completed the five major waves. It reached a peak of $0.68835 before entering the corrective phase and forming waves W, X, and Y.
DOGE is now in a new cycle, with waves (1) and (2) already formed. According to the analyst, wave (3) could drive the DOGE price to between $0.35 and $0.50. Wave (4) is expected to correct the price, followed by wave (5), the final phase, which could push the price into the $1 zone. This aligns with the 1,500% move predicted by analyst Kaleo and reported by Crypto News Flash.