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Dogecoin Price Closes Daily Candle With Lower Wick, Why Another Crash Could Be Coming
The price of Dogecoin (DOGE) has been on a downtrend lately, with its recent close marking the end of a daily candle featuring a lower wick. This bearish signal could be a precursor to another crash in the cryptocurrency’s value.
In 2024, DOGE experienced a massive surge in popularity, essentially erasing the bulk of its price gains from earlier that year. However, since then, investors have been rolling back their investments in the coin, with sentiment around Dogecoin now at its most negative level in over a year.
According to on-chain data, this shift in investor sentiment has led to a substantial increase in selling pressure, which could potentially drive the price of DOGE even lower. As a result, the recent close with a lower wick may signal the start of another downward trend for the cryptocurrency.
One analyst, Tardigrade, noted that there is still potential for price manipulation in the form of a brief dip below $0.143 before Dogecoin recovers. This assessment aligns with that of another crypto expert who suggested DOGE could reach as low as $0.12 during this downtrend before undergoing any significant bullish reversal.
At press time, DOGE is trading at $0.1702 and has been fluctuating within a narrow range between $0.1624 and $0.1726 over the past 24 hours.
DOGE trading at $0.17 on the 1D chart | Source: DOGEUSDT on Tradingview.com
