The Dogecoin price may be in for more pain, as a crypto analyst has projected another significant breakdown to new lows. On the bright side, the analyst suggests that this retracement will offer a discount for traders who aim to capitalize on the buy-dip opportunities and accumulate ahead of a potential increase.
If it fails to break a key resistance area, the Dogecoin price could see another major drop to new lows at $0.125. According to TradingView crypto analyst Dave Hunter, this bearish outlook is a more likely scenario for Dogecoin, considering its current market performance and volatility.
Dogecoin Price Set To Retrace To $0.125 Discount
The TradingView analyst shared a chart representing the Dogecoin price action on a weekly timeframe, highlighting the trajectory of his bearish breakdown projection for the meme coin. Hunter calls his projected decline in the Dogecoin price a discount zone, suggesting an area where traders would find it more favorable to accumulate the meme coin.
The red horizontal line at $0.24 marks an order block, which is the critical resistance level at which Dogecoin’s price is set to react. The analyst urges traders to withhold buying more Dogecoin until it attempts a short-term retracement to this area.
Given the weakened state of the market, Hunter emphasized that shorting should take more precedence for traders. The reason is probably because Dogecoin has been in a declining state for weeks now, and initiating a sell-off would help traders prevent further financial losses, especially since additional slips in the meme coin’s value are expected.
The TradingView analyst warns that liquidity sweeps from lower levels may occur, meaning stop-losses of long positions may be triggered, fueling more selling pressure. Typically, an increase in selling pressure for any cryptocurrency often fuels volatility, potentially leading to a price drop as demand decreases.
While he shared his bearish forecast for Dogecoin, Hunter also mentioned Dogecoin’s Central Liquidity Score (CLS) and market timing for traders. He highlighted that smart money operates in specific cycles, and traders should consider aligning their market entries with these CLS-based liquidity ranges to limit trade risks.
DOGE Rebound Incoming: Buy Signal Confirmed
In other news, Dogecoin could be getting ready for a potential price rebound, as its TD Sequential just flashed a buy signal on its daily chart. Renowned crypto analyst Ali Martinez highlighted this discovery on February 27 in an X (former Twitter) post.
The analyst’s chart indicated a 9 TD Sequential, which typically appears after nine consecutive downward candles and signals a potential trend reversal to the upside. The S13, indicated by the green arrow on the chart, also reinforces this rebound outlook. If the trend holds, Martinez believes Dogecoin could see a major upward movement from its current price of $0.21 soon.
Featured image from Adobe Stock, chart from Tradingview.com
Scott Matherson
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