Dogecoin price is struggling above $0.16 as a brutal selloff across the broader crypto market continues to weigh on the meme coin. Three factors now indicate that more bearish headwinds lie ahead and could spark a massive downturn for DOGE price to $0.06.
Dogecoin Price Risks 60% Crash to $0.06
Dogecoin price today trades at $0.165 with a slight 1.5% increase in 24 hours. However, despite this surge, three indicators suggest that the meme coin might be headed for further dips.
Analyst Flips Bearish on Dogecoin Price
One of the top reasons why DOGE is facing a 60% crash is because of the Dogecoin price prediction shared by popular analyst Ali Charts. In his analysis, the analyst identified that DOGE was sitting at the lower trendline of an ascending parallel channel.
If DOGE flips the lower channel of this trendline, it may trigger a sharp dip to the 23.6% Fibonacci level of $0.06, which will mark a 60% fall from the current DOGE price. Conversely, if DOGE can sustain levels above $0.16 and avoids breaching this trendline, it could spark an uptrend to $0.57.
Liquidation Heatmap Shows Massive Liquidation Zone Below Price
The liquidation heatmap shows a hot liquidation zone for Dogecoin below the current price. This magnet zone lies at $0.153, where many open long positions will be closed if DOGE drops to this level.
Prices tend to gravitate towards a hot liquidation zone. Therefore, if Dogecoin falls to this price and triggers these long liquidations, it could lead to additional selling pressure that will push the meme coin lower.
Therefore, if DOGE falls to $0.16, the next major support for this top meme coin is $0.153. This might be a trigger for the 60% crash towards $0.06.
Elon Musk Abandons “DOGE Father” Role
Elon Musk seems to have abandoned his role as the “DOGE Father” after his recent statement about Dogecoin not having any role in the US government. According to Fortune, Musk clarified that DOGE would not be used in any of the government activities.
This statement differs from Musk’s previous support for Dogecoin, which has forged his name as the “DOGE father”. Moreover, a previous article by Coingape noted that Musk may have killed Dogecoin’s popularity after his government appointment.
Summary
Dogecoin price is on the verge of a 60% crash to $0.06 if it breaks support at the lower trendline of an ascending parallel channel. The liquidation heatmap with a 24-hour lookback period and Elon Musk’s failure to support DOGE suggest that the meme coin may face further headwinds.
The post 3 Reasons Why Dogecoin Price Risks 60% Crash to $0.06 appeared first on CoinGape.
