Dogecoin Price Crash Alert: Analyst Predicts 40% Plunge

Dogecoin price faces a significant crash risk as per crypto analyst Josh Olszewicz. The Ichimoku Cloud indicator reveals a bearish TK cross and a bearish Kumo breakout, indicating a potential sell-off. If Dogecoin's price falls below the critical $0.14 support level, it could trigger a 40% crash towards the $0.10-$0.09 region, as suggested by a Head and Shoulders pattern. Traders should monitor the $0.14 level closely for a decisive break that could confirm the bearish outlook.

Dogecoin Price Crash Looming: Analyst Warns of 40% Decline

Cryptocurrency analyst Josh Olszewicz has once again issued a stark warning, predicting a significant price crash for Dogecoin (DOGE). Olszewicz's analysis is based on the Ichimoku Cloud indicator, which takes into account various technical factors to gauge support/resistance levels, momentum, and trend direction.

Bearish Technical Signals

Olszewicz's examination of the 1-day chart for DOGE paired against the US dollar (DOGE/USD) reveals two bearish technical phenomena.

Bearish TK Cross: The Tenkan-Sen (conversion line) and the Kijun-Sen (baseline) within the Ichimoku Cloud system have crossed over, with the Tenkan-Sen moving below the Kijun-Sen. This "bearish TK cross" indicates a drop in short-term prices below the month-long average, signaling potential further downward movement.

Bearish Kumo Breakout: The "Kumo" (cloud) is formed between two lines: the Senkou Span A and the Senkou Span B. When the price action falls below the Kumo, as it has in the current analysis, it implies a bearish trend confirmation. The overall market sentiment for DOGE is thus seen as negative, with the Kumo now likely acting as resistance to any upward price movement.

40% Price Crash Prediction

These technical indicators reinforce Olszewicz's previous analysis, which highlighted a potential Head and Shoulders (H&S) formation on the 12-hour chart for DOGE/USD. The H&S pattern is characterized by a distinctive peak (head) flanked by two smaller peaks (shoulders), with the neckline at approximately $0.14 acting as a pivotal support level.

If DOGE's price breaks below this critical neckline, it could trigger a sell-off, potentially leading to a 40% price crash from the current level. This target area aligns with the 1.618 and 2.0 Fibonacci extension levels.

Market Caution Advised

While the H&S pattern has not yet been confirmed, with the price still above the crucial $0.14 support, it serves as a cautionary signal for investors. The confluence of the bearish TK cross and the bearish Kumo breakout in Olszewicz's latest analysis further emphasizes the potential for a significant price decline for DOGE.

Traders are advised to closely monitor the $0.14 level. A decisive break below this level could validate the bearish outlook and initiate the anticipated downward trend. As of press time, DOGE was trading at $0.1413.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Trading cryptocurrencies carries significant risks, and investors should conduct thorough research before making any decisions.