Crypto analyst Abundance has provided an in-depth analysis of the Dogecoin price promotionwhich explains why the top meme coin could still crash again. On the other hand, he also revealed how Bitcoin’s price action could push DOGE higher than its current level.
Dogecoin price is still at risk of crashing to $0.06
In one X messageAbundance stated that the Dogecoin price could fall to around $0.06 to give the market another long on DOGE towards $0.16. Its accompanying chart showed that $0.9176 is the key support for the leading meme coin must stay above to prevent the price from falling to this new low. DOGE also risks falling to $0.03 and then breaking off to $0.06.
Related reading
The analyst also noted that instead of falling, the Dogecoin price continued to move sideways, compressing the price action. He added that the lows in the time cycle mark expansion points, not just bottoms. As such, Abundance stated that DOGE could see an increase from current levels if the Bitcoin price towards $77,500.
He also pointed out the lower timeframes compared to the multi-timeframes, noting a possible bump-and-run pattern in the price action of Dogecoin and in many other altcoins, with tight invalidation for a nice risk to reward. As such, Abundance suggested that the best approach to the current market conditions was to keep an open mind as DOGE could recover from current levels instead of falling further.
Commenting on the higher time frame, Abundance stated that he is still leaning towards a lower target for the Dogecoin price. He noted that the more upside liquidity left untouched before downside liquidity is wiped out, the more fuel there is for longer-term bullish expansion. The analyst added that May is the next local bottom he is looking at for DOGE.
A demand zone between $0.09 and $0.06
Crypto analyst Ali Martinez pointed to the fractals for the Dogecoin price, noting that the zone between $0.090 and $0.060 is the zone where he believes smart money will start to accumulate. He added that this is the ‘coiling’ phase that historically occurs before the next parabolic move for the main meme coin.
Related reading
The analyst previously referred to DOGE’s monthly chart and highlighted the meme coin’s gains during the previous bull run. He also indicated that Dogecoin price could bottom between $0.06 and $0.09 as a parabolic rally above $1 is expected in the next period. running of the bullswhich marks a new all-time record (ATH) for the meme coin. Martinez also predicted that DOGE could reach $10 based on its historical price gains in previous cycles.
At the time of writing, the Dogecoin price is trading around $0.09297, up in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com