The DOGE has already lost more than 60% of its value since May 8. But for one analyst, the token’s price could fall even further.
Despite its popularity, listing on major exchanges and the support of Elon Musk, Dogecoin has not escaped the cryptocurrency crash. Since its May 8 ATH, the DOGE price has posted more than a 60% drop.
As of 9 a.m. on Monday, June 21, the token was down just over 5% to $0.27. But the worst may be yet to come. That’s what the chart analysis conducted by Tyler Durden – that’s his pseudonym – suggests.
The analyst thus highlights what looks like a pattern referred to by experts as a “Head and Shoulder”. What does this mean? It is a pattern in which an asset forms three peaks at the top of a single support level.
Based on this observation, Durden predicts a 67% drop in the price of Dogecoin. A drop that would therefore add to the 60% drop already recorded since May. The DOGE would thus risk losing a large part of its value.
However, the token sometimes seems to escape the classic financial analyst. One variable in particular is disrupting these predictions: Elon Musk. It was the latter who catapulted the cryptocurrency’s price.
But for Tyler Durden, the Musk effect no longer works. “Even Elon [Musk] can’t save this with his tweets. He’s tried, and every time, he’s just created another lower peak,” he writes.
So the $0.05 price of DOGE “is scheduled,” the analyst says. This will represent a vertiginous fall after the $0.76 of May 8, or more than 16,000% increase since the beginning of the year 2021.
Recall that a year earlier, in March 2020, Dogecoin was clocking in at just $0.00112. Since then, DOGE was up over 67.000%. Few cryptocurrencies can claim such a strong, and sustainable, performance.
Could this adventure be coming to an end? That’s the opinion of another pseudonymous analyst. For Asian Investor, Dogecoin is simply pump-and-dump, in other words, its value is totally artificial. As a result, its price could go back to zero.
“With new pump-and-dump ‘opportunities’ popping up every other day, it’s not very attractive to invest [in] an ‘asset’ that has already risen so much. Expect Dogecoin to fall toward $0 this year and die a slow death,” he predicts.