Dogecoin Breakdown Possible as Analyst Highlights 2022-Style Pattern

An analysis by VisionPulsed suggests Dogecoin might face a deeper breakdown even if Bitcoin experiences a short-term bounce. The analyst notes that a familiar 2022 pattern is reappearing across major cryptocurrencies and memecoins.

Key Insights

  • Bitcoin's daily stochastic RSI is moving from overbought to oversold. Previous cycles led to new price lows, but this time it might signal a short- to medium-term trend reversal if a higher low forms.
  • If Bitcoin's current low holds and a relief rally occurs, Dogecoin could potentially follow but from a weaker position. Currently, Dogecoin is making lower lows unlike Bitcoin.
  • The analyst predicts a potential Dogecoin rally to around $0.20 in January before resuming its downtrend towards $0.05–$0.06.
  • Bitcoin is currently within the lower band of a 7–8 day Gaussian channel, similar to 2022's pattern. A convergence of moving averages is expected in late January or early February, possibly leading to a significant downward move.

At present, Dogecoin is trading at $0.12974.

Dogecoin price