Quickly understand the history and background of various well-known coins

Dogecoin's Price Volatility Raises Bearish Concerns, Analyst Warns

Coin WorldThursday, Apr 24, 2025 8:38 pm ET

1min read

Dogecoin has recently experienced significant volatility, with its price fluctuating from a low of $0.157 to a high of $0.185 within a 48-hour period. Despite this bullish interest in the broader crypto market, Dogecoin's price has since retreated to $0.172, raising concerns about its ability to maintain support above the $0.17 level. This erratic trading behavior has drawn comparisons to Bitcoin's performance relative to gold, highlighting a potential bearish trend for Dogecoin.

Bloomberg Intelligence Senior Analyst Mike McGlone shared a chart on the social media platform X, overlaying Dogecoin’s market cap trajectory with the Bitcoin-to-gold price ratio. According to McGlone, these two assets have been moving in tandem since December 2024, exhibiting what he referred to as “same-chart syndrome.” The chart shows that both Dogecoin’s market cap and the Bitcoin/gold cross have respected an upward trendline over the past several months, but McGlone warns that this support may not last much longer.

McGlone's analysis suggests that the synchronized patterns between Dogecoin and Bitcoin's performance relative to gold indicate a potential bearish outcome for DOGE. The aggressive rise in 2024 followed by a pullback to an ascending support line suggests that DOGE may be entering a bearish cycle rather than a full-fledged bullish cycle. McGlone expects the ascending support trendline to be breached very soon, which could lead to a significant crash in Dogecoin's market cap.

McGlone's bearish forecast for Dogecoin is not solely based on price action. He ties the predicted breakdown in both Dogecoin and Bitcoin/gold to broader macroeconomic developments, particularly the likelihood of a delayed recession hitting the US market. The ascending support line that has kept the Dogecoin market cap in place is currently around $22 billion, making this an important level to monitor. At the time of writing, DOGE is trading at $0.1720 with a market cap of $25.63 billion. If its price were to drop to $0.147, Dogecoin’s market capitalization would fall below $22 billion, based on its current circulating supply of 148.98 billion.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.