Crypto analyst Kevin Capital has revealed what could lead to the Dogecoin price crashing further. The foremost meme coin has already suffered a double-digit loss today but looks to still be in danger of more price crashes based on Kevin’s analysis.
Dogecoin Price At Risk Of Crashing Further If This Happens
In an X post, Kevin Capital stated that if the Bitcoin price doesn’t bounce from its current level, the Dogecoin price will probably go lower before finding a bottom. The analyst noted that the foremost meme coin suffered a pretty bearish daily close yesterday, presenting a setback for DOGE, which had started the week on a positive note.
The Dogecoin price suffered a significant crash due to strong economic figures. These figures present a bearish picture for risk assets like the meme coin since a Fed rate cut looks unlikely anytime soon. DOGE dropped from its intraday trading high of around $0.39 yesterday to as low as $0.33, representing a crash of over 10%.
The Bitcoin price is also in bearish territory at the moment, which means that, as Kevin suggested, the Dogecoin price could easily crash further. The analyst’s accompanying chart showed that if it loses the $0.33 support level, Dogecoin could drop to as low as $0.29. This will represent a massive setback for DOGE, which started the year in the green after a rough December.
However, despite the risk of a further short-term crash in the Dogecoin price, Kevin is still bullish on the meme coin’s long-term trajectory. In another X post, the crypto analyst remarked that the higher time frame structure is still bullish. As such, he added that he sees no reason to be super bearish until something big actually changes. For now, the analyst expects a lot of sideways movement.
It’s Not Time To Short Or Sell DOGE
Crypto analyst Trader Tardigrade also expressed optimism about the Dogecoin price in an X post. He stated that now is not the time to short or sell DOGE. He further noted that the foremost meme coin is retesting the apex of the ascending triangle, providing a bullish outlook.
The analyst’s accompanying chart showed that the Dogecoin price could rebound from its current level and rally to as high as $0.90, marking a new all-time high (ATH) for the meme coin. The chart also showed that this bullish reversal could happen sometime this month. This aligns with crypto analyst Master Kenobi’s prediction that DOGE will hit a new high as Donald Trump takes office on January 20.
At the time of writing, the Dogecoin price is trading at around $0.34, down over 11% in the last 24 hours, according to data from CoinMarketCap.
