Dogecoin Price Crash Incoming, Analyst Predicts Dip Below $0.2 Before Recovery

The Dogecoin price is consolidating around the $0.3 mark after declining by more than 21% in the past month. A crypto analyst has identified a new Cup

A crypto analyst has identified a new technical pattern that could lead to a potential Dogecoin price crash. The analysis suggests that the meme coin might be headed for more pain, with a possible crash below the $0.2 level.

After declining by more than 21% in the past month, Dogecoin’s price has been consolidating around the $0.3 mark. Now, a TradingView analyst has shared a new analysis suggesting that DOGE is likely headed for more pain.

According to the analyst, Dogecoin’s price movements on a long-term weekly time frame can be analyzed using Elliott Waves to identify a new Cup and Handle pattern.

The analyst, known as ‘Cryptechcapital,’ shared the chart on TradingView, highlighting the Elliott Wave structure and the formation of the Cup and Handle pattern.

The analysis suggests that if the pattern holds, it could indicate a significant price correction for Dogecoin to new lows. Cryptechcapital’s analysis outlines a 5-wave impulse structure from 1 to 5 on Dogecoin’s price chart. Currently, Dogecoin is in Wave 4, which typically represents a period of price retracement and sideways movement.

The handle of the Cup and Handle pattern also corresponds with Wave 4 of Dogecoin’s 5-wave structure. Cryptechcapital’s analysis predicts a potential Dogecoin price crash in the immediate term as it completes Wave 4.

The analyst suggests that if the Cup and Handle pattern holds, Dogecoin could experience downward pressure over the next week. Cryptechcapital also adds that the broader crypto market may experience similar bearish headwinds, given the rising market volatility and Bitcoin’s declining price.

Although the analyst’s precise projections for the decline aren’t specified, Wave 4 corrections usually retrace a large portion of the gains made during the previous Wave 3.

Hence, if Dogecoin experiences a price decline during Wave 4, a potential dip below the $0.2 level could be possible.Cryptechcapital’s analysis predicts a significant Dogecoin price crash, but he also suggests that this anticipated correction could pave the way for a powerful rebound.

The TradingView analyst adds that following the completion of Wave 4, Dogecoin is expected to enter Wave 5, marking the end of the bearish phase and signaling a potential price rally.

As mentioned earlier, the Cup and Handle pattern is often used to indicate a final consolidation period before a price breakout. Cryptechcapital’s analysis suggests that Dogecoin could experience a severe price crash before triggering a price recovery to the $1 mark.

The analyst’s price chart also highlights that if Dogecoin manages to reach a local high instead of continuing the projected correction, the Cup and Handle pattern will be invalidated.

In such a scenario, a new analysis would be required to determine the next price trajectory for Dogecoin.