In the realm of meme coins, Dogecoin (DOGE), endorsed by none other than Elon Musk himself, is grappling with short-term bearish pressure, mirroring the broader crypto market sentiment. As the early New York session unfolded on Tuesday, Dogecoin was trading around $0.063, unmistakably signaling its position within the final stages of a macro consolidation phase before a forthcoming bullish breakout.
Nonetheless, the meme coin appears poised to dip further in the coming weeks, strategically positioning itself to harness additional bullish momentum. According to renowned digital asset analyst Crypto Tony, who boasts an impressive following of over 335k X platform enthusiasts, Dogecoin’s price trajectory remains somewhat precarious.
This uncertainty stems from last month’s descent from a significant macro-falling logarithmic trendline. Crypto Tony notably asserted that Dogecoin’s bullish cohort must recapture their momentum by allowing for a further dip, especially after encountering rejection on three occasions from the upper resistance boundary.
Crypto Tony anticipates that Dogecoin’s price could potentially descend to as low as $0.040, a strategic move aimed at facilitating a rebound that can catapult it beyond the overarching macro resistance zone. This perspective finds resonance among many investors who anticipate that the premier meme coin will continue its descent until it identifies a more robust support level.
Zooming out for a broader perspective, Dogecoin faces formidable competition from other meme coins, such as Shiba Inu (SHIB). Notably, SHIB recently introduced its layer two (L2) scaling solution, Shibarium, further intensifying the rivalry within the meme coin arena.
Currently, Dogecoin’s fortunes appear heavily tethered to the whims of Elon Musk’s Twitter pronouncements, a factor that numerous analysts contend may not suffice in fending off the competition posed by other meme coins. Nonetheless, it’s worth noting that Dogecoin has witnessed a notable uptick in on-chain developments when compared to the pre-2021 crypto bull market.