- Dogecoin dropped 27% this week, following Bitcoin’s fall below $100,000.
- RSI signals a possible bounce, with projections suggesting DOGE could reach $1.35.
- Traders are watching for signs of recovery as Bitcoin stabilizes.
Dogecoin (DOGE) has been hit hard by the recent downturn in the cryptocurrency market, which was largely triggered by Bitcoin’s (BTC) decline below the $100,000 mark. This sharp drop has sent waves of fear through the market, causing significant price fluctuations across several cryptocurrencies, with Dogecoin no exception. Over the past week, DOGE has seen a staggering 27% decline, reflecting the overall turbulence in the market.
As of now, Dogecoin is trading at $0.300151, with a 24-hour trading volume of $18.45 billion and a market capitalization of $44.20 billion. Its market dominance currently stands at 1.34%. The coin has experienced a notable 16.18% drop in the last 24 hours, mirroring the overall bearish sentiment engulfing the broader crypto landscape.
Bitcoin dipped below the $100,000 mark, igniting fears of further downward momentum. This sharp shift in sentiment is evident, as crypto traders and investors alike have been caught off guard by the scale of Bitcoin’s fall, forcing many to reevaluate their positions and risk exposure.
According to reports from well-known crypto analyst Ali Martinez, traders on Binance capitalized on this market shift by shorting Bitcoin at the top, when it was trading at $108,000. Currently, with Bitcoin dipping below $96,000, sentiment has shifted, with 55.44% of traders taking long positions, hoping to capture potential upside from a reversal.
Dogecoin Set for $1.35 Target
From a technical perspective, Dogecoin appears to be in a potential rebound zone. The Relative Strength Index (RSI) for DOGE has dropped to a level that historically signals a potential reversal in price. In September 2024, when Dogecoin’s RSI fell to a similar level, the cryptocurrency saw a significant bounce, skyrocketing from a local bottom of $0.095 to as high as $0.48. This move represented a huge gain, and if history repeats itself, DOGE could be on the verge of another strong surge.
If the same level of upward momentum occurs, some projections suggest that Dogecoin could see its price soar to as high as $1.35, representing a massive rally from its current price. This potential surge, while speculative, has generated renewed hope among traders and investors who are waiting for a price recovery.
While Dogecoin has struggled amid the recent market turmoil, there is a glimmer of optimism for a possible rebound, especially if Bitcoin finds stability and investor sentiment shifts back in favor of the crypto market. Traders and investors will closely monitor these technical indicators, watching for signs of a potential recovery as DOGE moves through its current price range.
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