Crypto analyst Erick Crypto has highlighted a Dogecoin price squeeze, which is currently playing out. Based on this, he mentioned two possible scenarios that could play out for the largest meme coin by market cap. Two Possible Scenarios as Dogecoin Price Squeezes In an X post, Erick Crypto stated that the Dogecoin price is squeezing hard, with a descending triangle and strong horizontal support around $0.136. He added that DOGE is compressing at the apex, which means that a breakout ot breakdown is imminent. The pundit warned that there is high volatility ahead of the meme coin. Related Reading: Pundit Reveals Why January Will Be A Month For Dogecoin, But Can DOGE Price Reach ATHs? Meanwhile, the crypto analyst stated that the Dogecoin price could see more downside if it loses the $0.13 support. On the other hand, it could record a relief rally if it breaks the trendline. He urged market participants to trade the breakout and not the noise. Erick Crypto’s analysis comes amid the crypto market downturn, which has already sparked a massive crash for DOGE. Notably, the Dogecoin price is down over 20% in the last month, since around when the Bitcoin price first crashed below the psychological $100,000 level. The meme coin has also failed to gain traction despite the launch of two DOGE ETFs during this period. Bitcoinist reported that these Dogecoin ETFs have so far underperformed and failed to gain interest from institutional investors. Meanwhile, the Dogecoin price and the broader crypto market are at risk of further declines as the Bank of Japan (BOJ) is likely to raise interest rates this week. This could tighten liquidity in the market and also lead to a further unwinding of the yen carry trade, which is a negative for crypto assets, including DOGE. DOGE Is At A Crossroad Crypto analyst CryptoCeek stated that the Dogecoin price is at that “classic meme coin fork-in-the-road.” The analyst explained that if the bears push and hold the price under $0.13, the door opens for a full retest of $0.10, where buyers historically aggressively buy the dip. On the other hand, CryptoCeek stated that reclaiming the 20D EMA near $0.14 would scream a bear trap, with $0.19 on the cards for “one of those classic DOGE squeezes.” Related Reading: Dogecoin Holds Demand Zone Above $0.13, What A Bounce Would Do Crypto analyst Master remarked that between $0.8 and $0.10 seems likely for the Dogecoin price. He added that the base case is that the meme coin trades sideways until 2028, when the next bull run may start. However, as CryptoCeek suggested, DOGE may bounce from around $0.10 as the bulls step in to accumulate more coins at that price level. Featured image from Pixabay, chart from Tradingview.com
Dogecoin has yet to deliver the kind of rally many expect in the current market cycle, but one analyst believes that is only a matter of time. Posting on the social platform X, the analyst with the handle @EtherNasyonaL described a parabolic run for Dogecoin as inevitable, pointing to recurring chart structures that preceded Dogecoin’s explosive rallies in 2017 and 2021. Dogecoin’s price movement in this cycle has largely been characterized by short-lived bursts of momentum followed by lengthy stretches of sideways consolidation or gradual retracements. Yet, there is a strong conviction among the most bullish Dogecoin proponents that the true rally for this cycle has not yet taken place. To them, Dogecoin is still in the build-up stage for a strong rally. Dogecoin Hasn’t Pumped Yet This Cycle One such example is a recent analysis that was posted on the social media platform X, where the analyst noted that Dogecoin hasn’t actually pumped up in the current cycle yet. Related Reading: Dogecoin Is Sitting On A Powder Keg: Here’s The Explosion That Will Send Price To $1.3 The chart posted by the analyst draws attention to a series of descending trendlines that Dogecoin has historically broken through and gone on exponential rallies shortly after. These periods often lasted years, with prices moving sideways and testing investor patience before then going on a rapid pump. Particularly, the analyst highlighted the 2017 breakout, where Dogecoin climbed out of a multi-year base, retested the moving average, and then rallied in the months after. As well as the 2021 rally, where the meme coin broke above the multi-year base and retested the moving average again before finally soaring to its current all-time high of $0.7316. The current setup shows Dogecoin in a similar position. Having broken above the resistance trendline months back, the Dogecoin price went back to retest the monthly moving average again, as shown by the red circle in the chart below. Now, it seems Dogecoin is trying to extend a rally, as evidenced by the price action in the past two months above $0.22. If history repeats, the present stage may be laying the groundwork for yet another multi-month price surge. The Current Cycle Looks Different Dogecoin’s current price cycle presents unique dynamics compared to past rallies. Unlike in 2017 or 2021, which were mostly based on meme coin hype, Dogecoin is now trading in a crypto market with higher liquidity and greater institutional investments. As such, the factors for any projected rally at this point will depend on the amount of institutional inflows that come into Dogecoin. Related Reading: Ultra Wealth Dogecoin Whales Buy Billions In DOGE – Here Are The Numbers Discussions around Spot Dogecoin ETFs have added a new dimension to how capital could flow into the asset. If such products gain regulatory approval, they could open up Dogecoin to institutional inflows, much like what has already been seen with Bitcoin and Ethereum ETFs. Nonetheless, Dogecoin’s on-chain data and trading metrics have begun to reflect behavior consistent with accumulation phases seen ahead of past breakouts. September, in particular, has been highlighted by multiple whale purchases. For example, DOGE whales added 2.08 billion DOGE to their holdings during the most recent price pullback below $0.23. At the time of writing, Dogecoin is trading at $0.231. Featured image from Pixabay, chart from Tradingview.com