In the world of meme coins, Dogecoin $DOGE , famously endorsed by Elon Musk, is facing short-term bearish pressure, reflecting the broader sentiment in the crypto market. As of Tuesday's early, New York session, Dogecoin was hovering around $0.063. This suggests it's in the final stages of a macro consolidation phase before an expected bullish breakout.
However, DOGE may dip further in the coming weeks, strategically positioning itself for a potential surge. According to renowned digital asset analyst Crypto Tony, who has a substantial following of over 335k platform enthusiasts, Dogecoin's price trajectory remains to be determined.
This uncertainty can be traced back to last month's descent from a significant macro-falling logarithmic trendline. Crypto Tony suggests that for Dogecoin to regain its bullish momentum, it might need to experience a further dip, especially after being rejected three times from the upper resistance boundary. He anticipates that DOGE's price could drop to as low as $0.040.
This strategic move aims to create a foundation for a rebound that can push it beyond the overarching macro resistance zone. Many investors share this perspective, expecting DOGE to continue its descent until it identifies a stronger support level.
Taking a broader view, #Dogecoin faces stiff competition from other meme coins, including Shiba Inu (SHIB). Notably, SHIB recently introduced its layer two (L2) scaling solution, Shibarium, intensifying the rivalry in the meme coin arena.
Dogecoin's fate seems closely tied to Elon Musk's Twitter announcements. However, analysts argue more than this alone might be needed to fend off the competition from other meme coins. Nevertheless, it's worth highlighting that Dogecoin has seen significant on-chain developments compared to the pre-2021 crypto bull market.
Remember that investing in cryptocurrencies carries extreme risks, and making informed, intelligent decisions based on your financial situation and objectives is essential. Consult with a financial advisor if needed, and only invest what you can afford to lose.
