The OG meme coin has been in sharp decline over the past several months, recently plummeting to a three-year low.
According to one popular analyst, it might experience a short-term revival, whereas others think the cycle bottom has yet to arrive.
Dogecoin at a Crossroads
Earlier today (June 26), DOGE tumbled to around $0.072 before slightly rebounding to the current $0.074 (per CoinGecko). Despite the carnage, Ali Martinez said the asset’s TD Sequential indicator has flashed a buy signal and added that he will pay close attention to the $0.073 level.
“Hold it, and $0.081 is in play. Lose it, and the setup is no longer valid,” he estimated.
Last week, the analyst touched on DOGE again, revealing that 420 million coins have been distributed by whales over just seven days. As a result, the total holdings of these large investors have shrunk to nearly 35 billion tokens, or less than 23% of Dogecoin’s circulating supply.
Other market observers who have recently been vocal on the asset’s performance include Celal Kucuker and Part-Time Trader. The former envisioned a possible plunge to the $0.05-$0.06 zone, calling it an “attractive” buying range. In the meantime, the analyst remains highly bullish for the long term, arguing that DOGE has the potential to reach $1.
The latter issued a doomsday prediction, warning that the meme coin could be headed for a 95% collapse, bringing the price to approximately $0.004.
The Other Indicators
DOGE’s major pullback has led to a sharp decline in the Relative Strength Index (RSI). Its ratio briefly collapsed to roughly 18.6, indicating the asset has entered extreme oversold territory. Historically, such a low level has been a precursor to a rebound, and we have yet to see whether this will be the case here.
Dogecoin’s exchange netflow represents another ray of hope. Over the past several weeks, investors have continued to abandon centralized platforms in favor of self-custody solutions, reducing immediate selling pressure.
One powerful catalyst for a potential DOGE resurgence could be institutional interest in the meme coin, which, at the moment, seems absent. Spot Dogecoin ETFs remain unattractive to pension funds, hedge funds, and other conservative investors, with cumulative net inflows of just $12.6 million since their launch.
Source: CryptoPotato
