Analyst Predicts Dogecoin (DOGE) Price to Plummet as Bitcoin Dominates

Crypto analyst CrediBULL Crypto predicts a bearish outlook for Dogecoin (DOGE), suggesting a potential drop to $0.5. The analyst cites Bitcoin's rise as a factor, leading to decreased liquidity for altcoins like DOGE. CrediBULL believes DOGE's decline will occur as Bitcoin approaches $100,000. Despite his bearish expectations, he acknowledges the predicted $1 target for DOGE in this market cycle but emphasizes the complexity of its upward trajectory.

Crypto Analyst Predicts Steep Decline for Dogecoin (DOGE), Citing Bitcoin's Ascendance

Cryptocurrency analyst CrediBULL Crypto has issued a bearish forecast for Dogecoin (DOGE), predicting a potential drop to as low as $0.5. His analysis hinges on the expected impact of Bitcoin's surge on altcoin liquidity.

Correlation with Bitcoin's Movement

CrediBULL Crypto maintains that Dogecoin's price trajectory is closely tied to Bitcoin's movement. As Bitcoin gains momentum and ascends, it tends to draw liquidity away from altcoins like Dogecoin. This reduced liquidity can lead to significant price declines for these smaller cryptocurrencies.

Liquidity Deficit and Declining Price

According to CrediBULL Crypto, Dogecoin's decline to $0.5 could occur in tandem with Bitcoin reaching $100,000. He believes that at this price point, Bitcoin will absorb a substantial portion of market liquidity, leaving altcoins such as Dogecoin vulnerable to sell-offs.

Historical Performance and Retracement Potential

The analyst also cites Dogecoin's previous price surge against Bitcoin as a factor supporting his bearish outlook. He argues that a retracement of 50% or more is plausible, given the meme coin's already impressive gains.

Rejection and Further Decline

CrediBULL Crypto anticipates that Dogecoin will face resistance during its next upward rally and subsequently drop to between $0.09 and $0.10. He suggests that a temporary recovery may follow, but that another rejection is likely to ensue, pushing the price "further down and bleeding" as Bitcoin continues to soar.

Eventual Rise to $1

Despite his bearish predictions for the short term, CrediBULL Crypto acknowledges the belief among some analysts that Dogecoin will eventually reach $1. However, he cautions that this rise will not be as straightforward as some have suggested.

Liquidity Rotation and Dogecoin's Trajectory

CrediBULL Crypto asserts that Dogecoin will only embark on its parabolic rise to $1 after liquidity has rotated back into Bitcoin and large-cap tokens. He believes that meme coins will be among the last to benefit from this rotation.

Current Price and Outlook

At the time of writing, Dogecoin is trading at approximately $0.16, having gained over 1% in the past 24 hours. Despite this modest uptick, CrediBULL Crypto's analysis suggests that the meme coin remains vulnerable to a significant decline in the coming weeks.