Dogecoin Drops 7% Amid Broader Crypto Correction

Crypto analyst Jmorg has provided an in-depth technical analysis, which shows what could happen to the Dogecoin price from its current levels. The top meme coin has already dropped below the psychological $0.2 level as part of a broader crypto market correction.

In a TradingView post, Jmorg stated that Dogecoin has meaningful momentum behind its current price action, which is evident in the Money Flow Index (MFI). He noted that the indicator is accelerating off a very low momentum and trending higher on the weekly timeframe.

The analyst further remarked that the Bollinger band width is narrowing to historical lows, which could eventually be the catalyst for the necessary volatility needed for DOGE to return to or exceed its current all-time high (ATH). He claimed that Dogecoin could reach $1 based on a Cup-and-Handle measured move. Meanwhile, the foremost meme coin could touch $0.95 based on the measured move from a breakout of the rectangle.

Commenting on the Fibonacci retracement, Jmorg stated that given the momentum and potential increase of volume, a retracement to the current ATH of $0.73 seems likely. The analyst added that a pause and continuation of the advance higher would put Dogecoin near $1.20.

He went on to allude to Dogecoin’s historical pattern, which saw the meme coin record gains of 8,000% and 2,000%. The analyst noted that an 8,000% gain would take DOGE to $15, or a market cap of $2.3 trillion. Jmorg remarked that it seems unlikely, as BTC has a market cap of about $2.2 trillion.

However, the analyst highlighted a scenario where the Bitcoin price rallies to $200,000 and then a breakout of the wedge pattern sends Dogecoin to $15. He remarked that such a scenario makes the $15 price target more realistic and that, since crypto is unpredictable, anything is possible.

In his analysis, Jmorg also outlined factors that could send the Dogecoin price to new highs. First, he stated that the midterm elections will matter and that he suspects the Trump administration will do everything possible to retain control of DC, which would likely lead to pro-crypto policies.

The analyst added that pro-crypto policies and deregulation could be a powerful tailwind for the US economy, which would help keep people employed and ultimately maintain high asset prices.

Another factor which Jmorg outlined is the Dogecoin ETF. He noted that approval for these funds appears likely, and this could provide a significant source of demand. The DOGE ETFs would drive institutional inflows, which could spark a price surge for the meme coin.

The last factor is the potential integration of Dogecoin payments on the X social media platform. The crypto analyst noted that this doesn’t seem unrealistic, given that Elon Musk is a huge fan of the meme coin. Like the DOGE ETFs, he said that this could provide a source of demand for the meme coin.

At the time of writing, the Dogecoin price is trading at around $0.1897, down over 7% in the last 24 hours.

Summary: Crypto analyst Jmorg has provided a detailed technical analysis of Dogecoin, highlighting the potential price movements from its current levels. According to Jmorg, Dogecoin has significant momentum, as indicated by the Money Flow Index (MFI), which is trending higher on the weekly timeframe. The narrowing Bollinger band width suggests that the necessary volatility for DOGE to return to or exceed its current all-time high (ATH) could be on the horizon. Jmorg predicts that Dogecoin could reach $1 based on a Cup-and-Handle measured move or touch $0.95 based on a breakout of the rectangle. He also mentioned that a retracement to the current ATH of $0.73 seems likely, with a pause and continuation of the advance higher putting Dogecoin near $1.20. Jmorg also discussed historical patterns and potential scenarios that could send Dogecoin to new highs, including pro-crypto policies, the approval of a Dogecoin ETF, and the integration of Dogecoin payments on the X social media platform.